A Proposal for Goodwill Accounting
An alternative accounting for goodwill in a business combination is proposed. In contrast to the ill‐defined ‘plug’ for goodwill in current accounting, the proposed accounting captures the economics of the transaction that identifies what is being purchased and what is subsequently being amortized or impaired. Empirical documentation complements the prescription.
Authors
- Stephen H. Penman (ORCID: https://orcid.org/0000-0002-2435-5119)
- Hyung Il Oh (ORCID: https://orcid.org/0000-0002-5540-8519)
Institutions
- Korea Advanced Institute of Science and Technology (KR)
- Bocconi University (IT)
- Columbia University (US)
Publication Details
- Journal
- Abacus
- Published
- 2025-10-26
- DOI
- https://doi.org/10.1111/abac.70010
- Primary Topic
- Auditing, Earnings Management, Governance
- Type
- article
- Field-Weighted Citation Impact
- 0.00