Abstract

FONSECA, João Carlos. Goodwill is not an asset. Economia Global e Gestão [online]. 2009, vol.14, n.2, pp.81-93. ISSN 0873-7444.

In the actual context of international financial crisis it was questioned by the society in general the role of accounting. On this subject, comes with special relevance the accounting treatment of goodwill on business combinations. This article analysis the goodwill concept, its economic rational and the accounting framework in the light of International Financial Reporting Standards. From the analysis of its economic rational, insufficiencies and incoherencies were detected in the accounting treatment of goodwill translating a lack of faithful representation of the company’s financial position and performance and the true and fair view of its financial statements. All this originated an effect of increased volatility and pro-cyclicality in the performance of companies, which influenced its financial structure and the financial system and the business world. Finally, given the materiality in question, it is proposed an amendment to International Financial Reporting Standards with a grace period and retrospectively with two options.

Keywords : International Financial Reporting Standards; Goodwill; International Accounting Standard Setting; International Financial Crisis.

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