Internally-Generated Goodwill - Problems and Approaches to Defining and Measuring It

The issue of accounting recognition and disclosure of internally generated goodwill (IGGw) acquires significant relevance in today's development of the markets. In a number of publications, it is part of the "hopes" for explaining the structure of the market value of public enterprises, which, according to recent research, is due to the value of non-reconized intangible assets rather than to tangible assets. The key question is whether, through the historical assessment, the goodwill that is created in an enterprise can be assessed at all, given that it is created over time and therefore its value is constantly changing and clarifying. These arguments require the search for alternatives to establish the value of IGGw. However, we believe that recognizing the internally generated goodwill as a separate accounting object should not be allowed. In order to obtain additional information that would be useful to consumers, we consider it is appropriate to make the reporting a separate part (as annex) to the annual financial statement.