Research On The Measurement Of Internally Generated Goodwill And Its Application

ABSTRACT:For a long time, the problem of goodwill has been a difficulty to research and the center of debate for account academic. With the continuous development of economic society and the progress of science and technology, especially the arrival of the era of knowledge economy, enterprise’s assets structure is undergoing significant changes, some factors have long been neglected, especially the value of non-material elements which represented by internally generated goodwill play a more and more important impact on enterprise. Reality requires enterprises to strengthen the confirmation, measurement and disclosure of internally generated goodwill; however, because the theoretical problems about internally generated goodwill have not yet reached a consensus, the information about internally generated goodwill has not been reflected in the report. The main reason is that internally generated goodwill cannot be reliably measured. If we can properly solve the problem of measurement of internally generated goodwill, other problems can be solved easily. Therefore, this article focuses on the measurement of internally generated goodwill.Clear about the nature of internally generated goodwill has important guiding significance and decisive significance on the research about the measurement of internally generated goodwill. On the basis of extensive reading of goodwill research literature at home and abroad, this paper first has carried on the deep analysis of the nature of internally generated goodwill, and hold the view that the "excess profitability resource view" most comprehensive description to the nature of internally generated goodwill, which internally generated goodwill is essentially a variety of unbilled specific intangible resources and enterprise competence, and internally generated goodwill is the integrated embodiment of intangible resources and enterprise competence. Then makes a comparative analyze to the two mainstream measurement methods, combined with the "excess profitability resource view" draw excess earnings method is more suitable for measuring internally generated goodwill. After, selecting A-share listed companies during the years2007-2012as samples, using the excess earnings method to measure a company’s internally generated goodwill, and based on the economics assumption that the amount of capital gain equal access to test the results, and the results found that results through the excess earnings method can reflect the value of internally generated goodwill to some extent, but there is the phenomenon of overestimation of its value. Subsequently, in order to solve the problem that the excess earnings method overestimated the value of internally generated goodwill, we build assessment system to assess the value of internally generated goodwill, and introduce the fuzzy comprehensive evaluation method to evaluate enterprise’s internally generated goodwill and its intensity so that to correct the results measured by the excess earnings method to get the value of internally generated goodwill. Finally, in order to better clarify the fuzzy comprehensive evaluation method, this paper takes Hundsun Electronics Co.,Ltd as an example, use the above method to evaluate the company’s internally generated goodwill.Through the study, the paper provides new ideas for the measurement of internally generated goodwill to make internally generated goodwill reflected in the report as soon as possible, so as to promote the development of goodwill accounting standards, but also hope that the paper can attach more people paying attention to the measurement of internally generated goodwill...