A review of research performed on the approach to the subsequent measurement of goodwill
Journal of Economic and Financial Sciences
| Field | Value | |
| Title | A review of research performed on the approach to the subsequent measurement of goodwill | |
| Creator | Jhavary, Humnaaz Ecim, Dusan Van Zijl, Wayne | |
| Description | Orientation: By taking stock of goodwill accounting literature, the article identifies key themes and highlights the lack of innovation in goodwill and intangibles’ accounting evolution.Research purpose: This article suggests pure grounded theory research is required to develop a novel perspective on goodwill accounting.Motivation for the study: Little progress has been made to overcome the dated issues related to goodwill impairment necessitating a genuinely fresh approach.Research approach/design and method: A search was performed on the Scopus Database and all sources containing a combination of ‘goodwill’ and ‘impairment’, ‘amortisation’ or ‘depreciation’ in the title, abstract or keywords were extracted. A total of 231 sources from 1990 to 2022 are analysed. These are coded with the support of a content analysis and a bibliometric analysis.Main findings: This research identifies the dominance of positivist quantitative research and financial economics as a key issue that may be holding back progress on the subsequent treatment of goodwill. The research iterates three core issues, namely: (1) that the impairment-only approach allows too much managerial discretion, (2) an inability to reasonably estimate the useful life of goodwill deters many from supporting goodwill amortisation and (3) sometimes goodwill may be a wasting asset while others may genuinely have an indefinite useful life.Practical/managerial implications: This research may be relevant for standard setters when considering goodwill accounting methods.Contribution/value-add: The research provides insights into existing literature and highlights areas for future accounting research. | |
| Publisher | AOSIS | |
| Date | 2024-05-03 | |
| Identifier | 10.4102/jef.v17i1.928 | |
| Source | Journal of Economic and Financial Sciences; Vol 17, No 1 (2024); 15 pages 2312-2803 1995-7076 | |
| Language | eng | |
| Relation |
The following web links (URLs) may trigger a file download or direct you to an alternative webpage to gain access to a publication file format of the published article:
https://jefjournal.org.za/index.php/jef/article/view/928/1785
https://jefjournal.org.za/index.php/jef/article/view/928/1786
https://jefjournal.org.za/index.php/jef/article/view/928/1787
https://jefjournal.org.za/index.php/jef/article/view/928/1788
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