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Goodwill Accounting in Selected Countries and the Harmonization of International Accounting Standards
Author(s) -
BRUNOVS RUDOLF,
KIRSCH ROBERT J.
Publication year - 1991
Publication title -
abacus
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.632
H-Index - 45
eISSN - 1467-6281
pISSN - 0001-3072
DOI - 10.1111/j.1467-6281.1991.tb00263.x
Subject(s) - goodwill , accounting , harmonization , amortization , business , accounting standard , national accounts , mark to market accounting , financial accounting , comparability , asset (computer security) , accounting information system , economics , debt , finance , physics , computer security , computer science , acoustics , mathematics , combinatorics
Economic and financial markets interpenetrate and national economies are increasingly interdependent. This results in a growing need for comparability of accounting procedures internationally. Accounting for goodwill illustrates this phenomenon. By specifying the recommended asset treatment for purchased, positive goodwill, and the five‐year amortization period, IASC has taken a significant step towards harmonization of goodwill accounting. As noted in the article, however, the implications for consolidated income may be quite drastic. This is especially so with respect to the implications of the revised IAS 22 (following IAS ED 32) for potential leveraged corporate buy‐outs.