Accounting for goodwill : a critical evaluation

• Main Author: Van der Merwe, Maynard Jacobus
• Other Authors: Faul, M. A.
• Format: Others
• Language: en
• Published: 2015
• Subjects: Accounting for goodwill; Goodwill; Intangible assets; Purchased goodwill; Inherent goodwill; Negative goodwill; Goodwill amortisation; Business combinations; Goodwill on consolidation; Goodwill measurement; Goodwill valuation; Super profits concept; Residuum concept; Intangibles concept; 657.7; Clean surplus (Accounting); Goodwill (Commerce) > Accounting; Intangible property > Accounting
• Online Access: Van der Merwe, Maynard Jacobus (1996) Accounting for goodwill : a critical evaluation, University of South Africa, Pretoria, <http://hdl.handle.net/10500/16269>; http://hdl.handle.net/10500/16269

The principal goal of this research study was to critically evaluate the current accounting treatment of purchased goodwill in terms of a theoretical framework established, including an evaluation of the true nature of goodwill. The main conclusion of this study is that goodwill is an intangible asset representing various intangible factors contributing to the enterprise's earning capacity and providing returns in excess of a normal return on assets employed for which an acquiring enterprise is willing to pay an amount in excess of the fair value of the identifiable net assets acquired. The cost of purchased goodwill is measured as the difference between the total purchase price and the fair value of the net assets acquired after ensuring that all assets, tangible and intangible, had been properly identified. Purchased goodwill should be amortised over the estimated period that the enterprise is expected to benefit from the acquisition of the goodwill. === Financial Accounting === M. Com. (Accounting Science (Applied Accountancy))