On the Confirmation of the Goodwill

The goodwill is widely existing in modem corporation＇s management, and becoming a corporation＇s important and economic resources more and more, it has become a commonplace that goodwill can bring the corporation the competence that exceeds the average profit horizontal of the industry and economic benefits. Therefore, the goodwill also becomes the important contents that accountancy checks increasingly, among them; the confirmation of goodwill is a basic problem in the accountancy.     

传统商誉计量方法的选择

近年来随着对无形资产的会计核算愈来愈重视，对商誉确认计量的会计研究也多了起来，对于商誉的计量方法有不同的看法，本文主要阐述传统的商誉计量方法的运用以及对其的评价。     

基于合创商誉的并购企业价值评估方法研究

文章以现金流量折现法和实物期权理论为基础,引入合创商誉的概念,研究了战略型并购中目标企业的价值估值,并构建了目标企业价值评估整体框架。研究表明,合创商誉是由主并企业和目标企业共同作用形成的一种资产,它创造的价值的一部分应计入目标企业的价值估值中,这使得目标企业价值评估更准确。     

Examining the Patterns of Goodwill Impairments in Europe and the US

We examine the patterns of goodwill impairments in Europe and in the US over the period from 2006 to 2015, for a sample of more than 35,000 firm-year observations. We define the timeliness of goodwill impairments as the frequency of accounting impairments conditional to indications of economic impairments. We measure indications of economic impairment with three metrics: equity market value minus equity book value less than goodwill, market-to-book smaller than one and negative earnings before interest, tax, depreciation and amortisation (EBITDA). Our research strategy leads us to draw very different conclusions than those in the recent EFRAG (2016) study. While median levels of goodwill on the books between US and European firms are relatively similar, we find several indications that US firms recognise timelier impairments, at least during 2008 and 2009, that is, the early years of the financial crisis. We further document that US impairers write down a much greater percentage of their beginning balance of goodwill than European impairers. During the financial crisis, the median level of impairment by US firms was 63% of opening goodwill in 2008 and 40% in 2009, whereas median European write-downs were only 6% and 7% of opening goodwill, respectively. Even though European firms are more likely to impair over multiple years, the cumulative impairments never come close to the level of US firms, be it in a single year or cumulative over multiple years. We also find that the frequency of accounting impairment is small compared to the number of firms presenting evidence of economic impairment: only 20–25% of firms recognise impairments depending on the measure of economic impairment. This has often been interpreted by academics as a sign of untimely write-offs. Accounting differences between US Generally Accepted Accounting Principles and International Financial Reporting Standards are unlikely to explain our results. One caveat of our analysis is that it does not allow us to draw conclusions on whether the observed differences between US and European firms are driven by differences in conditional conservatism and/or big bath accounting practices.     

Goodwill write-off and financial market behaviour: An analysis of possible relationships

The aim of this contribution is to verify whether there exists a reaction of financial markets to the new accounting method for goodwill introduced by SFAS 142 and IAS 36. Our research hypothesis is that financial markets should have no significant reaction to the goodwill write-off following the impairment test, since the latter's outcome represents an economic estimate without financial significance. The hypothesis was checked by the analysis of the companies added to the Standard & Poor's Europe 350 index over a three-year period, taking note of goodwill write-off announcements and relating them with the stock market prices and their volatility. The results demonstrate a correlation between the goodwill write-off and the behaviour of financial markets, while the same connection cannot be evinced for prices volatility. Also, what comes out from our analysis is that markets need a relatively long period, over one semester, before absorbing in full the effects resulting from the write-off announcement.     

Overcoming the Trend Toward Healthier Foods: The Impact of Advertising and Intangibles on Investor Returns in the Packaged Food Industry

The study analyzes the impact of advertising, goodwill, and other intangibles on investor returns in the consumer packaged food and beverage industry during 2008–2012, a timeframe during which smaller brands wrestled $18 billion in sales away from large manufacturers of processed foods. The findings demonstrate that those firms that were able to allocate a greater percentage of their revenue to their ongoing advertising efforts were able to enhance investor holding period returns (HPR). In addition, those firms with a higher ratio of intangible assets other than goodwill to total assets were also able to enhance HPR. However, there was not a significant positive relationship between the ratio of acquired goodwill to total assets and HPR. Hence, packaged food and beverage manufacturers are advised to seek competitive advantages through their own brand-building efforts rather than seeking to enhance investor returns through a strategy based on company mergers and acquisitions.     

对自创商誉会计的思考

自创商誉符合资产的定义,应予以确认,并采用公允价值计量。当企业在连续若干年内总体市价都大于可辨认净资产公允价值时,开始确认自创商誉,并在以后逐年评估,对自创商誉不断再确认。对自创商誉的摊销可采用逐年重估法。     

BARGAINING AMONG FARMERS,GOODWILL, AND THE SUCCESS OF COOPERATIVES

A model of concessional bargaining among farmers explains the success (or lack thereof) of cooperative institutions in rural farm settings in the developing regions. Concessional bargaining in day‐to‐day interactions generates goodwill, which helps smoothen future dealings amongst farmers as well as with outside agents. In particular, we model the existence of goodwill amongst farmers as enhancing their ability to collectively bargain with an outside dealer that buys their farm produce. Results suggest that when dealing with each other, farmers offer higher concessions when the risk of loss or reversal in bargaining power is high; however, the level of concession is also influenced by the degree of reciprocity and parameters that affect bargaining surplus. Findings provide further insights over the success of cooperative institutions in rural farm settings where inter‐farmer goodwill dynamics determines the cooperative's bargaining outcomes. Specifically, when farmers generously reciprocate each other's goodwill gestures, it leads to better outcomes through increasing their cooperative reservation price. In contrast, when the degree of reciprocity is lower, or when the risk of bargaining power switching is higher, farmers extract more surplus from other farmers, and this also lowers the cooperative's bargaining outcomes and makes the cooperative arrangement unviable in the long term.     

借壳上市有关壳资源的会计计量问题探究——以华源股份为例

按我国现行规定,企业借壳上市过程中形成反向购买的,若构成业务则需确认商誉,否则按权益性交易处理。若壳公司保留少量业务,上市公司要么确认巨额商誉,要么不得不放弃这些少量业务,使上市公司陷入两难的处境。本文从企业整体价值出发,将借壳方的购买行为划分为取得上市地位的买壳和购买留存少量业务两部分。对于买壳行为,按权益性交易处理,不确认商誉;对于购买留存少量业务的行为,按照购买法确认商誉。对于壳资源价值计量,本文通过对华源股份的案例分析,建议采用协商定价的方法以化解壳公司留存少量业务情况下的壳资源和商誉计量问题。     

Determinants of initial goodwill overstatement in affiliated and non-affiliated mergers

This study examines the determinants of goodwill overstatement at the time of mergers in a Korean setting. In the Korean M&A market, there are two types of mergers: mergers between independent companies (non-affiliated mergers) and mergers between companies under common control (affiliated mergers). This study extends the literature by examining the factors likely to cause goodwill overstatement in both types of mergers. The results reveal that in affiliated mergers, goodwill at the time of a merger tends to be overstated when controlling owners have higher equity ownership in the target than in the acquirer. By contrast, information uncertainty in the target value causes initial goodwill overstatement in non-affiliated mergers. We also find that monitoring of independent institutional investors with concentrated holdings against overpaying for the target is more pronounced when controlling owners in affiliated mergers have incentives to overpay for the target. In affiliated mergers, acquirers tend to write off goodwill more frequently when controlling owners have higher equity ownership in the target than in the acquirer. In non-affiliated mergers, information uncertainty in the target value is significantly associated with subsequent goodwill write-offs. These results suggest that the type of merger has important consequences for initial goodwill recognition and subsequent impairment.