SUCH DIFFERENT GOODWILL: APPROBATION OF VARIOUS GOODWILL ASSESSMENT METHODS OF THE COMPANY AND INTERPRETATION OF THE RECEIVED RESULTS

Abstract

Goodwill is one of the least studied objects of accounting. The point of view on recognition and accounting
of goodwill has changed throughout the all XX century, depending on the domination of one or
another interested party (buyers, investors, country). At present, the order of recognition and subsequent reflection
of goodwill is regulated by normative legal acts of a various level. For this purpose in the domestic
accounting the Accounting regulation 14/2007 “Accounting of intangible assets”, in the international practice,
the International Financial Reporting Standard 3 “Business combination” are in force. However, these
documents don’t fix a goodwill assessment order. The organization has the right to choose a goodwill assessment
method on its own, based on its requirements and opportunities. Currently, there is a set of methods
for goodwill assessment, but not all techniques can be applied. The objective of the paper is to reveal
positive and negative sides of the most popular methods for goodwill assessment.
The paper concentrates on the practical application of existing goodwill assessment methods by means
of its calculation using the example of Lukoil Company. The data from the financial statements of Lukoil,
ratings of the leading appraisal companies, normative legal acts of tax authorities are used for calculation.
On the basis of the received results one can draw a conclusion about significant differences of the calculated
goodwill sums, depending on the chosen method and a reporting type, taken as a basis.
The received results can be used in the educational purposes, and also at the enterprises for the purpose
of a reasonable choice of an optimum method for goodwill assessment.