Goodwill and Current Costs in Large Corporate Transactions

25 Pages Posted: 1 Dec 2005

Date Written: 2004

Abstract

This paper analyzes several issues: 1) the efficiency of the new US goodwill rules, particularly within the context of large corporate transactions - Statement no. 141, Accounting for Business Combinations, and Statement no. 142, Accounting for Goodwill and Intangible Assets - 2) the goodwill impairment calculation, 3) potential problems and concerns raised by accounting practitioners and professionals in industry, 4) discretion and mis-statements in application of SFAS 142, 5) Current cost accounting. The series of transactions done by Encompass Services Inc., is used to illustrate various reasons for changes in the disclosure and accounting requirements for Goodwill.

Keywords: goodwill, M&A, disclosure, valuation, current costs

Suggested Citation

Nwogugu, Michael C. I., Goodwill and Current Costs in Large Corporate Transactions (2004). Available at SSRN: https://ssrn.com/abstract=859964 or http://dx.doi.org/10.2139/ssrn.859964

Michael C. I. Nwogugu (Contact Author)

Independent ( email )

P. O. Box 11104
Enugu 400007, Enugu State 400007
Nigeria
2348149062100 (Phone)

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
473
Abstract Views
2,142
Rank
111,215
PlumX Metrics