Goodwill Recognition And Measurement Study Based On The New Economic Environment

Over the years, the discussion of the Goodwill Accounting, which is a tough task, has been attracting many attentions from scholars and accounting users. China, on February 15, 2006 issued new accounting standards——China Accounting Standards (shorted as CASs), which set down specific standards for some special transactions and certain industries conforming to China's own conditions. Goodwill has been listed as a separate accounting subject by the CASs, which shows that china has been attach more importance to goodwill.However, after deeply study, it is found that there is still something wrong in the new principles in recognition and measurement of goodwill which means that there are still some worthy of our thought. My point of views come the following: I believe that under the new economic environment, the conditions for recognizing goodwill have been mature. It is the right time for us to use scientific methods to measure underlying goodwill. The record of goodwill which obsessed from A&M can not reflect the real value of this kind of assets. What we should do is to create more scientific approaches of the recognition and measurement of goodwill. And ,a better way to test goodwill after primary measurement is revaluation test.The main content of this paper is divided into six chapters. The first chapter is an introductory remarks, a summary of goodwill accounting study made by domestic and foreign scholars as well as the innovations and research methods of this paper .Chapter II shows an explore of the nature of goodwill, including the definition and classification of goodwill. It is the suitable time for us to cast lights on the goodwill accounting issues in the circumstance of the "new economy". Meanwhile, I give a definition of goodwill and classify the goodwill into three parts: human-related goodwill, market-based goodwill, Management goodwill. Chapter III consists of discussions of the recognition and measurement of underlying goodwill, which is the core of this paper. Theoretically, it is feasible to recognize underlying goodwill according to accounting objective, accounting recognition standards and accounting standards and accounting environment. Practically, the proposed measurement model of the underlying goodwill in this paper is proved to be validated according to the historical data of the listed companies of our country. Finally, I pointed out a right way to recognize the underlying goodwill initially and latterly. Chapter IV is also a core component of this paper, mainly describes why the record value of goodwill from acquisition is not in line with the real economic returns of that kinds of assets, and offers more reasonable recognition and measurement methods. Chapter V is discussion mainly from the angles of accounting disclosure. I believe that we should use the disclosure statements as a additional way to provide more relevant information for the stakeholders and potential investors to acquire more relative information after Inventing the recognition and measurement of underlying goodwill and purchased goodwill,...