Date of Award

8-1966

Document Type

Independent Study

Degree Name

Master of Science (MS)

Abstract

The purpose of this independent research study is to evaluate the creation, write-off, and the presentation of the goodwill account in the corporate financial statements. By developing the evaluation around these areas, the problems of goodwill are discussed by comparing corporate practices against professional recommendations

The difference between corporate practice and professional recommendations provides the basis for an evaluation of problems related to the goodwill account. The Accounting Trends & Techniques publication and professional journals provided the data regarding present business techniques. The American Institute of Certified Public Accountants, American Accounting Association, and Securities and Exchange Commission recommendations provided the discussion for the theoretical treatment of the goodwill account in corporate financial statements.

This study indicates that a clear and comprehensive definition of the goodwill account is necessary to take the initial step in resolving the problems related to goodwill. The second step would be to convince the Internal Revenue Service to allow the amortization of the goodwill account for tax purposes. If the goodwill account could be amortize9, it would be a major step in resolving the problems relating to write-off and presentation of the goodwill account

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