Research On Information Disclosure Of Internally Generated Goodwill From The Prospective Of Enterprise Value

In the background of knowledge economy, internally generated goodwill has gradually occupied principal position in intangible assets, and played a more and more important role in expanding enterprise profitability and promoting enterprise value.However, purchased goodwill caused by enterprise mergers and acquisition are recognized in the enterprise accounting standards of various countries, while internally generated goodwill is not dealt with, because there is not a reasonable method for accounting recognition, measurement and accounting treatment in internally generated goodwill. The off-sheet disclosure of the internally generated goodwill that cannot be listed on sheet is filled with scattered and disordered information lacking of quantity and quality with differences in the level of disclosure. Moreover, according to literature review, it is observed that theory circle lacks of systematic research on goodwill disclosure. Therefore, the limitation in theory and practice of goodwill disclosure and its importance in the creation of enterprise value form a sharp contrast. The author tries to effectively integrate internal generated goodwill with its disclosure as well as enterprise value according to its contribution to enterprise value. Therefore, this paper explores and studies the necessity, current situation and framework system of information disclosure of internally generated goodwill.This paper includes five chapters.The first chapter mainly introduces the topic-selecting motivation, the research actuality at home and abroad, the research approach and the innovation points of this paper.The second chapter discusses the interrelated concepts and theoretical basis of internally generated goodwill, including the definition of the concept of internally generated goodwill and enterprise value, and discusses theoretically the importance of information disclosure of internally generated goodwill with the economic principles.The third chapter further analyzes the correlation of internally generated goodwill and its disclosure with enterprise value, fully demonstrates the contribution of internally generated goodwill and its disclosure to enterprise value, thus further clarifies the necessity of information disclosure of internally generated goodwill.Based on the descriptive statistical analysis on current situation of information disclosure of internally generated goodwill in the annual report of the listed companies, the fourth chapter points out the noticeable inadequacy in the quantity and quality of internally generated goodwill information disclosure in the listed companies of China, which may lead to underestimate of enterprise value.According to the current situation that information disclosure is neglected and limitation of current financial report, the fifth chapter proposes tentatively a multiform, multileveled, omnidirectional and step by step framework for information disclosure of internally generated goodwill, which is aimed to fully disclose information of internally generated goodwill and promote enterprise value.The innovation point of this article are mainly discussed in the third, fourth and fifth chapter. The author integrates effectively internal generated goodwill and its disclosure as well as enterprise value, providing a new framework and perspective for the paper.