IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Comparing goodwill before and after the changes in us gaap in 2001

Listed author(s):
  • M.P. Lycklama à Nijeholt
  • Y.K. Grift
  • J.M.J. Blommaert
Registered author(s):

    This study examines whether the introduction of SFAS 141 “Business Combinations†(2001) and SFAS 142 “Goodwill and other Intangible Assets†(2001) has led to more precise information about accounting goodwill in the financial statements of acquirers. Acquisitions in the period 1997-2005 between US stock exchange listed companies were studied. The results show that after the introduction of new regulation the relative amount of accounting goodwill (59,8% of the purchase price) is lower when compared to relative accounting goodwill in the period before (67,6% of the purchase price). Moreover, more acquiring companies reported on intangibles under the new regime. Correcting for industries of the target companies, the total combined effect of the new accounting regime and reporting on intangible assets on relative goodwill is significant and negative. However, the effect of the new regime is limited for companies that separately report on acquired intangible assets. Apparently, this type of company is already accurately reporting. The results indicate that the changes in regulation have made goodwill a more concise concept; thereby bringing accounting goodwill and economic goodwill closer together.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: no

    Paper provided by Utrecht School of Economics in its series Working Papers with number 12-22.

    in new window

    Date of creation: 2012
    Handle: RePEc:use:tkiwps:1222
    Contact details of provider: Postal:
    P.O. Box 80125, NL-3508 TC Utrecht

    Phone: +31 30 253 9800
    Fax: +31 30 253 7373
    Web page:

    More information through EDIRC

    Order Information: Email:

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:use:tkiwps:1222. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Marina Muilwijk)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.