Research On The Accountant Of Internally Generated Goodwill

With the rapid development of science and advances in information technology, knowledge-based economy has replaced the industrial economy into the mainstream of economic form. In such an era of global economic integration, the wave of corporate mergers and acquisitions among emerging, it makes more and more people began to recognize the existence of goodwill. At the same time, as special intangible assets of enterprise, its value is increasing and the status is booming. So, it has had a significant impact on the growth and development of enterprises. This gave rise to the academic study of the importance of goodwill accounting, and made some achievements. However, due to the shackles of the traditional accounting theory, most of the research has focused on purchased goodwill instead of internally generated goodwill. Therefore, how to break the limitations of the existing theoretical framework, and use the scientific and rational approach to confirm and measure the goodwill, in order to provide more accurate and effective information to the users, has become a new direction of accounting research.This paper is divided into five parts, with the accounting treatment sequence as the basis, systematically discussed the recognition, measurement, amortization and disclosure issues about internally generated goodwill, it has combined with the current research and the author’s view, depicting a reasonable research blueprint for the accounting of goodwill. Firstly, we have reviewed the basic theory and research status at home and abroad about internally generated goodwill, compared the similarities and differences between internally generated goodwill and purchased goodwill, discussed the basic view on goodwill recognized from both positive and negative aspects, affirmed the necessity and possibility of goodwill confirmation, and elaborated the time and method on goodwill recognition. Secondly, this paper makes comparative analysis of the five basic accounting measurement attributes, selecting the current value and the fair value as measurement attributes of the goodwill. It discusses the viewpoints and methods about the measurement of goodwill, compares the pros and cons between the direct and indirect measurement methods, in addition, it proposes two new perspectives on the measurement of goodwill. Finally, we have discussed the subsequent measurement and disclosure of goodwill, through the comparative analysis of four methods of subsequent measurement about internally generated goodwill, combined with the essential characteristics of goodwill, expounded the impairment test method should be the most reasonable subsequent measurement of goodwill. Meanwhile, this paper has put forward my own views on the content and form of disclosure about internally generated goodwill. Via this research, I hope to make a contribution on developing the theory and practice about internally generated goodwill. Key words: Internally Generated Goodwill;Confirmation;Measurement;Amortization;...