Recognition and Measurement of Goodwill in Business Combination in Accordance with IFRS

Student: Zolotin Boris

Supervisor: Katerina Sorokina

Faculty: School of Statistics, Data Analysis and Demography

Educational Programme: Bachelor

Year of Graduation: 2014

<div class="OutlineElement Ltr SCX153827877" style="margin: 0px; padding: 0px; color: rgb(0, 0, 0); font-family: 'Times New Roman', serif; font-size: 8px;"><p class="Paragraph SCX153827877" paraeid="{e055492a-78e2-4c76-a93d-572628c80d91}{182}" paraid="1355222150" style="margin: 0px; padding: 0px; word-wrap: break-word; vertical-align: baseline; color: windowtext; text-align: justify; font-size: 6pt; background-color: transparent;">The problem to be studied in this paper is how companies determine the size of goodwill. In most cases, it is not a matter of accounting, as a question of policy or strategy of the company making the deal of acquisition. Why companies need to overpay on acquisition another company?  </div><div class="OutlineElement Ltr SCX153827877" style="margin: 0px; padding: 0px; color: rgb(0, 0, 0); font-family: 'Times New Roman', serif; font-size: 8px;"><p class="Paragraph SCX153827877" paraeid="{e055492a-78e2-4c76-a93d-572628c80d91}{187}" paraid="2134393203" style="margin: 0px; padding: 0px; word-wrap: break-word; vertical-align: baseline; color: windowtext; text-align: justify; font-size: 6pt; background-color: transparent;">The problem addressed is very complex because of need to take in account not only accounting principles of IFRS but also strategic motives of each companies in particular deal. </div><div class="OutlineElement Ltr SCX153827877" style="margin: 0px; padding: 0px; color: rgb(0, 0, 0); font-family: 'Times New Roman', serif; font-size: 8px;"><p class="Paragraph SCX153827877" paraeid="{e055492a-78e2-4c76-a93d-572628c80d91}{190}" paraid="741593507" style="margin: 0px; padding: 0px; word-wrap: break-word; vertical-align: baseline; color: windowtext; text-align: justify; font-size: 6pt; background-color: transparent;">The object this paper is aggregate mergers and acquisitions since 2000. </div><div class="OutlineElement Ltr SCX153827877" style="margin: 0px; padding: 0px; color: rgb(0, 0, 0); font-family: 'Times New Roman', serif; font-size: 8px;"><p class="Paragraph SCX153827877" paraeid="{e055492a-78e2-4c76-a93d-572628c80d91}{198}" paraid="1526608794" style="margin: 0px; padding: 0px; word-wrap: break-word; vertical-align: baseline; color: windowtext; text-align: justify; font-size: 6pt; background-color: transparent;">The subject of this study is the analysis of recognition and size of goodwill in business combinations according IFRS standards. </div><div class="OutlineElement Ltr SCX153827877" style="margin: 0px; padding: 0px; color: rgb(0, 0, 0); font-family: 'Times New Roman', serif; font-size: 8px;"><p class="Paragraph SCX153827877" paraeid="{e055492a-78e2-4c76-a93d-572628c80d91}{203}" paraid="1695453064" style="margin: 0px; padding: 0px; word-wrap: break-word; vertical-align: baseline; color: windowtext; text-align: justify; font-size: 6pt; background-color: transparent;">The main purpose of this paper is to identify and analyze the factors that have the most significant impact on the recognition and determination the size of goodwill. </div><div class="OutlineElement Ltr SCX153827877" style="margin: 0px; padding: 0px; color: rgb(0, 0, 0); font-family: 'Times New Roman', serif; font-size: 8px;"><p class="Paragraph SCX153827877" paraeid="{e055492a-78e2-4c76-a93d-572628c80d91}{216}" paraid="2057651845" style="margin: 0px; padding: 0px; word-wrap: break-word; vertical-align: baseline; color: windowtext; text-align: justify; font-size: 6pt; background-color: transparent;">The main objectives of this research is to study the principles of accounting for goodwill in IFRS, the analysis of papers devoted to the study of the problem of recognition and accounting of goodwill, detailed consideration of the specific business combinations and the allocation the most significant factors influencing the size of goodwill. Allocation of these factors allows statistical analysis and draw conclusions about their significance. </div><div class="OutlineElement Ltr SCX153827877" style="margin: 0px; padding: 0px; color: rgb(0, 0, 0); font-family: 'Times New Roman', serif; font-size: 8px;"><p class="Paragraph SCX153827877" paraeid="{e055492a-78e2-4c76-a93d-572628c80d91}{229}" paraid="831475368" style="margin: 0px; padding: 0px; word-wrap: break-word; vertical-align: baseline; color: windowtext; text-align: justify; font-size: 6pt; background-color: transparent;">The methods of the analysis are based on autoregressive processes like ARIMA process. Study of some regularities requires detailed consideration of the specific transaction. In addition, some of the information is available in the studies already undertaken by the major consulting and audit companies. </div>

Student Theses at HSE must be completed in accordance with the University Rules and regulations specified by each educational programme.

Summaries of all theses must be published and made freely available on the HSE website.

The full text of a thesis can be published in open access on the HSE website only if the authoring student (copyright holder) agrees, or, if the thesis was written by a team of students, if all the co-authors (copyright holders) agree. After a thesis is published on the HSE website, it obtains the status of an online publication.

Student theses are objects of copyright and their use is subject to limitations in accordance with the Russian Federation’s law on intellectual property.

In the event that a thesis is quoted or otherwise used, reference to the author’s name and the source of quotation is required.

Search all student theses