Full Goodwill Based on the Cost of Acquisition vs. Full Goodwill Based on Value of Acquired Entity

Celkový goodwill založený na pořizovacích nákladech akvizice vs. celkový goodwill založený na hodnotě nabývané jednotky

Vladimír Zelenka

Český finanční a účetní časopis, 2011, vol. 2011, issue 4, 131-141

Abstract: Goodwill was recognized to the extent of acquirer's interest for several decades. It was measured as difference between cost of acquisition and acquirer's interest in the identifiable net assets of acquired entity at the date of acquisition. Consequently recognized goodwill does not represent total goodwill that includes also the part of goodwill corresponding to the noncontrolling interest. If the base for the quantification of the full goodwill would remain the cost of acquisition, there would be impossible to find satisfactory way to quantify that part of the goodwill relating to the non-controlling interest. It appears as consistent approach the quantification of the full goodwill based on the fair value of acquired entity as a whole. Current approach according to IFRS 3 and SFAS 141(R) represents hybrid way to measure goodwill.

Keywords: Goodwill; Full goodwill; Purchased goodwill; Cost of Acquisition; Fair value of acquired entity; Non-controlling (minority) interest; Celkový goodwill; Nakoupený goodwill; Pořizovací náklady akvizice; Fair value nabyté jednotky; Nekontrolní podíly (search for similar items in EconPapers)
JEL-codes: M41 (search for similar items in EconPapers)
Date: 2011
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
http://cfuc.vse.cz/doi/10.18267/j.cfuc.161.html (text/html)
http://cfuc.vse.cz/doi/10.18267/j.cfuc.161.pdf (application/pdf)
free of charge

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:prg:jnlcfu:v:2011:y:2011:i:4:id:161:p:131-141

Ordering information: This journal article can be ordered from
Český finanční a účetní časopis, Vysoká škola ekonomická v Praze, nám. W. Churchilla 4, 130 67 Praha 3
http://cfuc.vse.cz

DOI: 10.18267/j.cfuc.161

Access Statistics for this article

Český finanční a účetní časopis is currently edited by Karel Brůna

More articles in Český finanční a účetní časopis from Prague University of Economics and Business Contact information at EDIRC.
Bibliographic data for series maintained by Stanislav Vojir ().