Compared Research On The Accounting For Goodwill Of China With That Of Foreign Countries

Mergers and acquisitions have been increasingly active. M&A fead to great combination goodwill. Though there are relatively complete " business combination theories" and consistent regulation on goodwill in western countries, Chinese entrepreneurs and regulators know little about them because our market system is still on the construction. Based on this consideration, I have chosen "Compared Research on the Accounting for Goodwill of China with that of Foreign Countries" as my research project. I believe, in the pending period of China, using these foreign principles directly should be a good strategy. I hope that through my research about the project, I can study and find a good way to solve the problems in the accounting for goodwill in our country.This thesis firstly deals with the basic definition of goodwill and the formation of goodwill. It probes the history of goodwill definition and the positioning of the definition of goodwill in the different fields of study. On the basis of the results of precedents' research, the author redefines goodwill by use of system theory and modern management theory. On the goodwill components the author summarizes the opinions of savants home and abroad and expounds the author's opinion. Secondly, the author studies the reasons for the development of goodwill accounting systematically. Thirdly, the author compared the history of the evolution of accounting for goodwill vertically with that in the United States of America, the Unite Kingdom of Great Britain, IASC and China. At the same time, the author compared the basic matters of goodwill horizontally with that in the United States of America, the United Kingdom of Great Britain, Canada, Australia, IASC and China. Finally, the author selected 600 companies listed in Shanghai Stock Exchange as samples. Through analyzing the "consolidated pricedifference" of the disclosure of their annual reports in 2000, the author finds some problems in the goodwill accounting of our country, then put forward countermeasures and advices.