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Accounting for Goodwill on Consolidation Before and After AAS 18
Author(s) -
Carnegie Garry D.,
Gibson Robert W.
Publication year - 1987
Publication title -
accounting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.645
H-Index - 49
eISSN - 1467-629X
pISSN - 0810-5391
DOI - 10.1111/j.1467-629x.1987.tb00083.x
Subject(s) - goodwill , consolidation (business) , accounting , business , diversity (politics) , political science , law
Abstract: The paper examines accounting practices in the treatment of goodwill on consolidation by listed companies in the periods before and after the application of AAS 18. A previous study established that prior to the advent of AAS 18, considerable diversity existed in this area of accounting practice. The accounting profession sought through AAS 18 to seek uniformity in the treatment of goodwill on consolidation. The survey evidence shows there is a high level of non‐compliance with this standard, hence substantial diversity continues.