Thesis (Ph.D.) -- University of Texas at Arlington, 2009.

Thesis, PlanB (M.S.)--University of Wisconsin--Stout, 2005. / Includes bibliographical references.

Thesis (Ph. D.)--University of Michigan, 1926. / Without thesis note.

Zugl.: Köln, Univ., Diss., 2009

Diss.

M.Com. (Accounting) / This study sets out to suggest a method of accounting for goodwill and brands which is practically feasible, yet conceptually justifiable. Only positive, acquired goodwill is relevant for purposes of this study. Both acquired and internally generated brands are, however, investigated. In terms of historical cost accounting, both acquired goodwill and brands qualify as assets of the enterprise since they are controlled by the enterprise as a result of past transactions and future economic benefits are expected to flow therefrom. Goodwill arises as a balancing amount in terms of double entry accounting as a result of the fact that the purchase consideration applicable to a business take-over often exceeds the aggregate of the fair values of the acquired enterprise's net assets. Because goodwill can therefore effectively be seen as a function of two other figures, the potential exists that it can be manipulated. A number of possible alternative accounting treatments of goodwill are in existence. In spite of a historical background of divergence, international statements now display increasing agreement in favour of the amortisation option. The opposite is, however, true in respect of the financial statements of South African companies. The. preparers and users of financial interest in preventing goodwill as statements have a vested far as possible. As regards goodwill that does arise, an accounting treatment with the smallest possible detrimental effect on the financial position and results of the company will enjoy preference. Contrary to this is the fact that the amortisation of goodwill is the most justifiable alternative from a conceptual point of view. A number of accounting options have been developed over the years with the intention of either preventing goodwill, or at least limiting its extent. Included in this is merger accounting (also called pooling of interests accounting) in terms of which goodwill is effectively set off against the share premium account in the case of a take-over where the purchase consideration is settled by means of a share issue. Another method is the capitalisation of brands in the place of goodwill. Brands are therefore considered to be a mere substitute for goodwill on the balance sheet and is consequently of doubtful value from an accounting and financial analysis point of view. In spite of a variety of accounting alternatives, acquired brands should thus be accounted for in the same way as goodwill. Furthermore, internally generated brands should not be acknowledged on the balance sheet. The implementation of this will lead to the artificial distinction between goodwill and brands losing its prominence in the course of time

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))

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))

<p><em><strong>Bakgrund:</strong></em> Efter införandet av IFRS har det förekommit en del förändringar gentemot tidigare redovisnings regler i Sverige. Från och med 1 januari år 2005 skall alla börsbolag gå över till IFRS 3 <em>Business Combinations</em>. Detta innebär att goodwill inte får skrivas av så som det gjorts tidigare. Nu mer måste det årligen ske ett Impairment test av goodwill för att undersöka om det föreligger ett nedskrivningsbehov.Diskonteringsräntan används vid impairment test av goodwill och är en viktig faktor vid nuvärdesberäkningar av kassaflöden.</p><p><strong><em>Problem:</em></strong> Noterade börsbolag utför ett <em>impairment test</em> av goodwill, vilket görs för att undersöka om nedskrivning av goodwill är aktuellt eller inte. Diskonteringsräntan är en viktig faktor vid Impairment test. Trots detta test utför inte de flesta företag nedskrivningar.</p><p>Varför gör inte företag några nedskrivningar kan det bero på att en praxis utvecklats?</p><p>Hur bestämmer företag diskonteringsräntan och varför, vilka är dess komponenter? </p><p><strong><em>Syfte:</em></strong> Med denna undersökning är att beskriva systematiskt hur företag tar fram sina valda diskonteringsräntor för omprövning av goodwill, kan detta bero på en praxisutveckling eller av andra omständigheter. Vi vill även undersöka vilka metoder företag använder sig för att ta fram dess diskonteringsränta samt dess komponenter.</p><p><strong><em>Metod:</em></strong> Undersökningen i denna uppsats har främst utgått från en kvantitativ enkätundersökning, även vetenskapliga tidskrifter samt skriftliga källor har använts.Totalt kontaktades 108 stycken noterade företag på Stockholms börs.</p><p><strong><em>Slutsatser:</em></strong> Det har visat sig att företag använder sig av förväntade kassaflöden vid framtagning av dess diskonteringsränta och WACC modellen. Impairment test har visat sig vara av betydelse då det ger en mer rättvisande bild och överblick på goodwill.</p> / <p><strong><em>Background</em>:</strong> Following the introduction of IFRS, has given rise to some changes towards the previous accounting rules in Sweden. As of January 1 year 2005, all listed companies move to IFRS 3 Business Combinations. This means that goodwill is not to be amortized as done previously. Now annually there has to be an Impairment test of goodwill in order to investigate whether there is need for impairment or not. The discount rate is used for impairment testing of goodwill and is an important factor in calculating the discounted value of cash flows.</p><p><em><strong>Problem</strong></em><em>:</em> Public listed company doing an impairment test of goodwill is done to examine whether the impairment of goodwill is relevant or not. The discount is an important factor in Impairment test. Although it's showed that most companies do not need to write down goodwill. Why do not some companies write-down goodwill, is it maybe that a practice developed? How do companies discount and why? What are its components?</p><p><em><strong>Purpose</strong></em>: This study is to describe systematically how firms develop their selected discount rates for review of goodwill, is it maybe due to a practice development or other circumstances. We also want to explore the methods companies use to develop its discount rate and its components.</p><p><em><strong>Method</strong></em>: The study in this thesis has mainly been based on a quantitative survey, including scientific journals and written sources. 108 companies listed on the Stockholm stock exchange were contacted.</p><p><em><strong>Conclusions</strong></em>: It has been shown that companies use the expected cash flows at the development of its discount rate and WACC model. Impairment tests have also proved to be of importance since it gives a more accurate picture and overview of goodwill.</p>

Bakgrund: Efter införandet av IFRS har det förekommit en del förändringar gentemot tidigare redovisnings regler i Sverige. Från och med 1 januari år 2005 skall alla börsbolag gå över till IFRS 3 Business Combinations. Detta innebär att goodwill inte får skrivas av så som det gjorts tidigare. Nu mer måste det årligen ske ett Impairment test av goodwill för att undersöka om det föreligger ett nedskrivningsbehov.Diskonteringsräntan används vid impairment test av goodwill och är en viktig faktor vid nuvärdesberäkningar av kassaflöden. Problem: Noterade börsbolag utför ett impairment test av goodwill, vilket görs för att undersöka om nedskrivning av goodwill är aktuellt eller inte. Diskonteringsräntan är en viktig faktor vid Impairment test. Trots detta test utför inte de flesta företag nedskrivningar. Varför gör inte företag några nedskrivningar kan det bero på att en praxis utvecklats? Hur bestämmer företag diskonteringsräntan och varför, vilka är dess komponenter?  Syfte: Med denna undersökning är att beskriva systematiskt hur företag tar fram sina valda diskonteringsräntor för omprövning av goodwill, kan detta bero på en praxisutveckling eller av andra omständigheter. Vi vill även undersöka vilka metoder företag använder sig för att ta fram dess diskonteringsränta samt dess komponenter. Metod: Undersökningen i denna uppsats har främst utgått från en kvantitativ enkätundersökning, även vetenskapliga tidskrifter samt skriftliga källor har använts.Totalt kontaktades 108 stycken noterade företag på Stockholms börs. Slutsatser: Det har visat sig att företag använder sig av förväntade kassaflöden vid framtagning av dess diskonteringsränta och WACC modellen. Impairment test har visat sig vara av betydelse då det ger en mer rättvisande bild och överblick på goodwill. / Background: Following the introduction of IFRS, has given rise to some changes towards the previous accounting rules in Sweden. As of January 1 year 2005, all listed companies move to IFRS 3 Business Combinations. This means that goodwill is not to be amortized as done previously. Now annually there has to be an Impairment test of goodwill in order to investigate whether there is need for impairment or not. The discount rate is used for impairment testing of goodwill and is an important factor in calculating the discounted value of cash flows. Problem: Public listed company doing an impairment test of goodwill is done to examine whether the impairment of goodwill is relevant or not. The discount is an important factor in Impairment test. Although it's showed that most companies do not need to write down goodwill. Why do not some companies write-down goodwill, is it maybe that a practice developed? How do companies discount and why? What are its components? Purpose: This study is to describe systematically how firms develop their selected discount rates for review of goodwill, is it maybe due to a practice development or other circumstances. We also want to explore the methods companies use to develop its discount rate and its components. Method: The study in this thesis has mainly been based on a quantitative survey, including scientific journals and written sources. 108 companies listed on the Stockholm stock exchange were contacted. Conclusions: It has been shown that companies use the expected cash flows at the development of its discount rate and WACC model. Impairment tests have also proved to be of importance since it gives a more accurate picture and overview of goodwill.