The Research On Essence And Measurement Of Goodwill

In 2006 the "Enterprise Accounting Standards" is promulgated, which recognized the amounts of merged party's combination costs more than the combined party's fair value of the identifiable net assets of as goodwill. The verification method violates the principle of prudence, and there is a lot of problems at the request of business goodwill, but also produced much controversial, no doubt rooted in the understanding of the essence of goodwill. Nearly a century, there were many fruitful explores on the essence of goodwill in the accounting profession, many different arguments had been put forward, the main theories focus on the constituent elements of goodwill, direct measurement and indirect measurement, but not made any substantial breakthrough. Further studies should be a clear position on this basis of goodwill, then demonstrate the problem of goodwill essence, and not completely agree. In this paper there are some views on the essences and measurement of goodwill, but the research is not perfect and need further explore, using quantitative methods to resolve. For goodwill, understanding the difference between practice and theory can be summed up as the gap between ideal and reality. Because the economic consequences of accounting standards, the accounting treatment of impairment testing has become mainstream. Existence of negative goodwill is the key to understanding the negative goodwill. Existing research usually start from the theoretical analysis, use the standard research methods. The future trend is confirmed by survey research methods such as generalized analysis. In short, a lot of problems involved in the accounting theory and practice of goodwill, needs and deserves more research. We should take an active interest and in-depth study of each problem, and continue to reflect the results on the appropriate accounting standards, being to guide current and future goodwill accounting issues.This paper generated from the internal factors caused the goodwill, points out five factors that affect the goodwill, by analyzing the interaction of these factors, have the result of the goodwill generated by external influences of the internal effects. Negative goodwill is the effect of the internal negative factors, and the negative effect must make outflow of economic benefits in the future. In this paper summarizes the three factors of negative goodwill impact. Then research the measurement of goodwill and fair value measurement, from the initial recognition of goodwill as an asset of enterprises, determine the fair value of goodwill, in future years recognized the fair value of goodwill on measurement date by reasonable means. This article uses the qualitative analysis and quantitative analysis methods, extense and scope of the concept of goodwill, and explores measured methods of goodwill.