Goodwill Accounting Research And International Comparison

Goodwill is the most complicated and divergent intangible asset. This thesis does a comprehensive research on goodwill's theories and makes international comparisons of its practices. By analyzing the definition, recognition and other related theories and practices about goodwill, the author delivers some opinions correspondingly. By comparing the standards and statements of goodwill in some developed countries and IASC, the author puts forward some advice on China's research and establishment of goodwill's standards.The author holds that internally generated goodwill is relevant to users' decisions and basically in accordance with the recognition criteria put forward by FASB. Therefore, it should and could be recognized. To enhance the comparability of accounting information, not only the original recognition and measurement methods for internally generated goodwill, purchased goodwill and purchased negative goodwill should be unified respectively, but also the subsequent treatment for integrated goodwill (i.e., the integration of above goodwill) should be unified. The paper advances a new method called Value Test Method. It can be used to record goodwill's impairment and increment and is applicable to enterprises that has internally generated goodwill and (or) purchased goodwill (positive or negative). Compared to some developed countries and IASC, China is lagging behind in the establishment of goodwill's accounting standards. Therefore, we should do deeper researches and develop our accounting standards for goodwill as early as possible.