e-journal

Goodwill accounting and performance measurement

---

The purpose of this paper is to outline the link between value creation, performance
measurement and goodwill accounting according to the International Financial Reporting Standards
(IFRS) and United States Generally Accepted Accounting Principles (US-GAAP). Since economic
goodwill is identical to the present value of future residual income, the paper examines how
accounting information gathered for impairment testing of goodwill according to International
Accounting Standard (IAS) 36 and Financial Accounting Standard (FAS) 142 can be used for internal
control purposes.
Design/methodology/approach – The paper adopts common assumptions in the literature of
residual income-based valuation and analytically derives a periodic performance measure of both
value creation and its realization based on information available from impairment testing.
Findings – This paper demonstrates that information required by IFRS and US-GAAP to evaluate a
firm’s goodwill can be used to design a performance measurement system which provides
information about both value creation and realization of value.
Practical implications – From a practical perspective, the paper shows that appropriate
adjustments of data used in impairment testing result in information which ideally fits the
requirements of an optimal performance measurement system.
Originality/value – The paper presents a performance measure which provides information about
the actual creation of value as well as its realization in a period and is superior to traditional residual
income-based performance measures.

Keywords Goodwill accounting, Performance measurement (quality)

---

Ketersediaan

Tidak ada salinan data

Informasi Detail

Judul Seri

Managerial Finance

No. Panggil

-

Penerbit

: Emerald Group., 2010

Deskripsi Fisik

Managerial Finance Vol. 36 No. 9, 2010

Bahasa

English

ISBN/ISSN

-

Klasifikasi

-

Tipe Isi

-

Tipe Media

-

Tipe Pembawa

-

Edisi

-

Subjek

AKUNTANSI

Info Detail Spesifik

-

Pernyataan Tanggungjawab

Asmawati/Syahrial

Versi lain/terkait

Lampiran Berkas

Komentar

---

Anda harus masuk sebelum memberikan komentar