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Reasons and Prerequisites of Goodwill Devaluation in the Ukrainian Banking Sector


  • Kundrya-Vysotska Oksana P.

    () (Lviv Institute of Banking of University of Banking of the National Bank of Ukraine)

  • Kolchar Yuliya O.

    () (Institute of Regional Researches NAS of Ukraine)


The authors conduct studies of economic prerequisites and factors, which resulted in writing-off significant amounts of goodwill value in Ukrainian banking institutions, which are structural parts of international financial institutions. In the result of analysis of main prerequisites the article identifies external and internal reasons of acknowledgement of devaluation of goodwill in the domestic banking sector. In accordance with the results of the study, the article identifies that acknowledgement of devaluation of goodwill testifies to a negative mood of foreign investors with respect to prospects of business development in the domestic banking market. The article justifies expediency of, separate from goodwill, identification of intangible assets, subject to acknowledgement in the result of unification of banks, in particular the client base of a bank, as an intangible asset with a final date of useful use. It proves that acknowledgement of this asset in the result of unification would allow avoiding significant amounts of write-off of goodwill value under unfavourable economic conditions. The prospect of further studies in this direction is justification of an optimal method of identification of the amount of goodwill devaluation, which would allow avoiding manipulations with financial reporting and would improve quality of presented information about the real financial state of banking institutions.

Suggested Citation

  • Kundrya-Vysotska Oksana P. & Kolchar Yuliya O., 2014. "Reasons and Prerequisites of Goodwill Devaluation in the Ukrainian Banking Sector," Business Inform, RESEARCH CENTRE FOR INDUSTRIAL DEVELOPMENT PROBLEMS of NAS (KHARKIV, UKRAINE), Kharkiv National University of Economics, issue 1, pages 302-306.
  • Handle: RePEc:idp:bizinf:y:2014:i:1:p:302_306

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    References listed on IDEAS

    1. David M Dror & John Armstrong, 2006. "Do Micro Health Insurance Units Need Capital or Reinsurance? A Simulated Exercise to Examine Different Alternatives*," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 31(4), pages 739-761, October.
    2. Christian Biener & Martin Eling, 2012. "Insurability in Microinsurance Markets: An Analysis of Problems and Potential Solutions," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 37(1), pages 77-107, January.
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