GOODWILL: CONCEPT, FEATURES AND ACCOUNTING TREATMENT

Людмила ТОДОРОВА, Молдавский государственный университет

Autori

  • USM ADMIN

Rezumat

The value of a company’s name, brand reputation, loyal customer base, solid customer service, good employee
relations, and proprietary technology represent aspects of goodwill. Goodwill arises when businesses are acquired
or merged. There are competing approaches among accountants to calculating goodwill. One reason for this is that
goodwill involves factoring in estimates of future cash flows and other considerations that are not known at the time
of the acquisition. In addition, the question arises: Should goodwill be recognized if the net assets of the acquired
entity are negative when the entity is acquired?
Keywords: intangible asset, positive goodwill, negative goodwill, commitment, cost goodwill, net assets, market
value.

DOI: https://doi.org/10.59295/sum11(3)2024_15

Publicat

2024-10-01

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