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Rekeningkundige verantwoording van klandisiewaarde en handelsmerke

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
Date13 May 2014
CreatorsGouws, Deon Etienne
Source SetsSouth African National ETD Portal
Detected LanguageEnglish
RightsUniversity of Johannesburg

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