Research Enterprise Internally Generated Goodwill Accounting Issues

With the development of merger and reconstruction and the booming of knowledge-based economy, goodwill has attracted more and more attention. Among the problems of goodwill, whether internally generated goodwill should be recognized or not has been a hot issue. Firstly, this article discusses the recognition of internally generated goodwill. Then, it studies the valuation, amortization and disclosure of internally generated goodwill in turn. This article points out that internally generated goodwill should be recognized as an asset, expectation value of annual excess earnings should take place of its positive value in excess earnings method, internally generated goodwill should not be amortized, but revaluation and allowance for impairment should be used to reflect the change of value in time. Besides, cost, allowance for impairment and net value of internally generated goodwill should be disclosed on balance sheet altogether. The study on the accounting problem of internally generated goodwill is meaningful for perfecting current theory of goodwill accounting.