Measuring and recognizing the value of purchased goodwill

A note on market value measurement method

Research output: Contribution to journalArticleResearchpeer-review

Abstract

Through a review of literature and with conceptual underpinnings, this paper demonstrates that relying on the market value measurement method to ascertain value of purchased goodwill does not contribute to more accurate value of the financial worth of the firm.It argues that the use of market value for the measurement of purchased goodwill for recognition in financial statements is a mere artifact and a response to the contemporary paradigm rather than a measure of the accurate financial worth of purchased goodwill. It demonstrates the need to seek a measurement method that does not impose a transaction as a necessary precondition for ascertaining the financial value of goodwill.
Original languageEnglish
Pages (from-to)57-65
Number of pages9
JournalAcademy of Taiwan Business Management Review
Volume8
Issue number3
Publication statusPublished - Dec 2012
Externally publishedYes

Fingerprint

Measurement method
Goodwill
Market value
Paradigm
Financial statements

Cite this

@article{1ebb62a3cb254d9ca4572ced7b942457,
title = "Measuring and recognizing the value of purchased goodwill: A note on market value measurement method",
abstract = "Through a review of literature and with conceptual underpinnings, this paper demonstrates that relying on the market value measurement method to ascertain value of purchased goodwill does not contribute to more accurate value of the financial worth of the firm.It argues that the use of market value for the measurement of purchased goodwill for recognition in financial statements is a mere artifact and a response to the contemporary paradigm rather than a measure of the accurate financial worth of purchased goodwill. It demonstrates the need to seek a measurement method that does not impose a transaction as a necessary precondition for ascertaining the financial value of goodwill.",
author = "Indra Abeysekera",
year = "2012",
month = "12",
language = "English",
volume = "8",
pages = "57--65",
journal = "Academy of Taiwan Business Management Review",
issn = "1813-0534",
number = "3",

}

Measuring and recognizing the value of purchased goodwill : A note on market value measurement method. / Abeysekera, Indra.

In: Academy of Taiwan Business Management Review, Vol. 8, No. 3, 12.2012, p. 57-65.

Research output: Contribution to journalArticleResearchpeer-review

TY - JOUR

T1 - Measuring and recognizing the value of purchased goodwill

T2 - A note on market value measurement method

AU - Abeysekera, Indra

PY - 2012/12

Y1 - 2012/12

N2 - Through a review of literature and with conceptual underpinnings, this paper demonstrates that relying on the market value measurement method to ascertain value of purchased goodwill does not contribute to more accurate value of the financial worth of the firm.It argues that the use of market value for the measurement of purchased goodwill for recognition in financial statements is a mere artifact and a response to the contemporary paradigm rather than a measure of the accurate financial worth of purchased goodwill. It demonstrates the need to seek a measurement method that does not impose a transaction as a necessary precondition for ascertaining the financial value of goodwill.

AB - Through a review of literature and with conceptual underpinnings, this paper demonstrates that relying on the market value measurement method to ascertain value of purchased goodwill does not contribute to more accurate value of the financial worth of the firm.It argues that the use of market value for the measurement of purchased goodwill for recognition in financial statements is a mere artifact and a response to the contemporary paradigm rather than a measure of the accurate financial worth of purchased goodwill. It demonstrates the need to seek a measurement method that does not impose a transaction as a necessary precondition for ascertaining the financial value of goodwill.

UR - http://www.jtiba.com/html/group-2012vo8_no3-issues.php

M3 - Article

VL - 8

SP - 57

EP - 65

JO - Academy of Taiwan Business Management Review

JF - Academy of Taiwan Business Management Review

SN - 1813-0534

IS - 3

ER -