INTERNALLY GENERATED GOODWILL ASSESSMENT: CONTEMPORARY TIMES REQUIREMENT OR NOT?


DOI: https://doi.org/10.15308/finiz-2014-81-84
Authors:
Zoran Petrović
Marko Milojević
Nenad Stanić
Danka Stefanović

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Keywords:
internally generated goodwill, brand, assessment, assessment methods, financial statements


Abstract:
Internally generated goodwill (IGG) is an asset that can significantly contribute to the business success of companies. Its value may be very high, although it is not visible directly in the financial statements. IGG value assessment is important not only for companies’ owners and managers, but for all external financial statements users as well, and above all potential investors. Considering that accounting standards do not allow presentation of IGG as an asset in balance sheet, reliance on the financial statements in which IGG is not recognized as an asset can mislead users of the financial statements about the company’s value and some financial ratios regarding the company’s financial position. However, there are methods for IGG approximate value assessment (especially brand) – the value which is sufficiently reliably estimated for the purposes of business decision-making, but not reliable enough for accounting recognition of IGG as an asset in the balance sheet.

CITATION:

IEEE format

Z. Petrović, M. Milojević, N. Stanić, D. Stefanović, “INTERNALLY GENERATED GOODWILL ASSESSMENT: CONTEMPORARY TIMES REQUIREMENT OR NOT?,” in FINIZ 2014 - The Role of Financial Reporting in Corporate Governance, Belgrade, Singidunum University, Serbia, 2014, pp. 81-84. doi: 10.15308/finiz-2014-81-84

APA format

Petrović, Z., Milojević, M., Stanić, N., Stefanović, D. (2014). INTERNALLY GENERATED GOODWILL ASSESSMENT: CONTEMPORARY TIMES REQUIREMENT OR NOT?. Paper presented at FINIZ 2014 - The Role of Financial Reporting in Corporate Governance. doi:10.15308/finiz-2014-81-84

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