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Towards an understanding of the phases of goodwill accounting in four Western capitalist countries: From stakeholder model to shareholder model

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  • Ding, Yuan
  • Stolowy, Hervé

    ()

  • Richard, Jacques

Abstract

The objective of this paper is to illustrate that the change in shareholders’ attitude towards firms (from stakeholder model to shareholder model) influences the accounting treatments of goodwill. This study is based on four countries (Great Britain, the United States, Germany, and France) and covers more than a century, starting in 1880. The authors explain that all these countries have gone through four identified phases of goodwill accounting, classified as (1) “static”(immediate or rapid expensing), (2) “weakened static” (write-off against equity), (3) “dynamic” (recognition with amortization over a long period) and (4) “actuarial” (recognition without amortization but with impairment if necessary).

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Bibliographic Info

Paper provided by HEC Paris in its series Les Cahiers de Recherche with number 872.

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Length: 70 pages
Date of creation: 25 Oct 2007
Date of revision:
Handle: RePEc:ebg:heccah:0872

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Keywords: Goodwill – Accounting history – Social nature of accounting – Stakeholder/shareholder models – Corporate governance; France; Germany; Great Britain; United States;

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Citations

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Cited by:
  1. Chabrak, Nihel & Bouden, Inès, 2010. "The IASB and the shareholder value priestly cult!," Economics Papers from University Paris Dauphine, Paris Dauphine University 123456789/6742, Paris Dauphine University.
  2. Lambert Jerman, 2013. "La Juste Valeur : Une Comptabilite Actuarielle Pour Les Marches ... Ou Les Comptables ?," Post-Print, HAL hal-00991877, HAL.
  3. Pierre Labardin & Karine Fabre, 2011. "Entre coût historique et valeur de marché : Une histoire de la valeur comptable en France (XIXe - début XXe siècle)," Post-Print, HAL hal-00650538, HAL.
  4. Mathieu Floquet, 2010. "Informations Aux Actionnaires Et Informations Aux Salariés : Une Analyse Textuelle Du Rapport Annuel Et Du Rapport De L'Expert-Comptable Du Comité D'Entreprise," Post-Print, HAL hal-00481504, HAL.
  5. Clare Roberts & Yue Wang, 2009. "Accounting harmonization and the value-relevance of dirty surplus accounting flows," Review of Accounting and Finance, Emerald Group Publishing, Emerald Group Publishing, vol. 8(4), pages 340-368, November.
  6. Paugam, Luc, 2011. "Valorisation et reporting du goodwill : enjeux théoriques et empiriques," Economics Thesis from University Paris Dauphine, Paris Dauphine University, Paris Dauphine University, number 123456789/8007 edited by Casta, Jean-François.
  7. Terhi Chakhovich, 2010. "The role of outcome focus within subject positions tied to shareholder value," Qualitative Research in Accounting & Management, Emerald Group Publishing, Emerald Group Publishing, vol. 7(4), pages 450-475, November.
  8. Jerman, Lambert, 2014. "Information financière, juste valeur et contrôle interne : La corporate governance comme illusion rationnelle ?," Economics Papers from University Paris Dauphine, Paris Dauphine University 123456789/13577, Paris Dauphine University.
  9. David Collison & Colin Dey & Gwen Hannah & Lorna Stevenson, 2010. "Anglo-American capitalism: the role and potential role of social accounting," Accounting, Auditing & Accountability Journal, Emerald Group Publishing, Emerald Group Publishing, vol. 23(8), pages 956-981, October.
  10. Yuan Ding & Thomas Jeanjean & Hervé Stolowy, 2013. "Accounting for Stakeholders or Shareholders? The Case of R&D Reporting," Post-Print, HAL hal-01002936, HAL.
  11. Nobes, Christopher & Stadler, Christian, 2013. "How arbitrary are international accounting classifications? Lessons from centuries of classifying in many disciplines, and experiments with IFRS data," Accounting, Organizations and Society, Elsevier, vol. 38(8), pages 573-595.
  12. Jerman, Lambert, 2013. "Fair value: actuarial accounting for the markets... or for the accountants?," Economics Papers from University Paris Dauphine, Paris Dauphine University 123456789/13729, Paris Dauphine University.

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