Goodwill as an economic resource in the digital economy: recognition and measurement

DOI

10.2991/iscde-19.2019.92How to use a DOI?

Keywords

goodwill, economic resource, business valuation, digital economy

Abstract

At present, there are often theoretical and applied discussions on the digital economy. In the context of the transformation of the digital economy into a systemic economy, the problem of the conformity of modern accounting statements to the needs of a wide range of stakeholders in a reliable assessment of business value is manifested to a greater extent. This problem cannot be solved at a time. A deep analysis of the assessment and recognition of individual elements of the financial statements will be required, which is difficult without digital transformation of data. This article analyzes a separate problem of the possibility and necessity of reflecting the economic category of goodwill in the structure of financial and integrated reporting. This issue concerns not only the accounting and reporting system, since analysis of the effect of goodwill and intangible assets on the business value of foreign companies [1] showed that the share of goodwill in the cost structure of organizations ranged from 36% (by type of activity - energy production) to 70.4 % (in terms of activities - Internet business and electronic business). However, in only six types of activities, the share of goodwill was less than 50%. Unfortunately, it should be noted that in Russia, this economic resource is either not reflected at all in the accounting and reporting of economic entities, or its value is significantly underestimated. Nevertheless, it is possible to change the current situation based on the provisions of the institutional economy and the catalization of management financial accounting information in the context of its digitalization. Changes in the goodwill accounting methodology will require: justifying the recognition and measurement of internally generated goodwill as the capitalized cost of transaction costs, justifying the market capitalization of the value of internally generated goodwill and determining goodwill as the result of a business combination transaction. Note that the solution to these problems is possible only in the unity and interconnectedness of all three elements of the systemic economy: institutional economics, accounting and reporting, and digitalization of economic information, on the basis of which it is possible to form a new direction in accounting - business accounting and integrated reporting aimed at on digitalization of information on a real assessment of business value and prospects for its sustainable development.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - V.S. Plotnikov
AU  - O.V. Plotnikova
PY  - 2019/12
DA  - 2019/12
TI  - Goodwill as an economic resource in the digital economy: recognition and measurement
BT  - Proceedings of the International Scientific and Practical Conference on Digital Economy (ISCDE 2019)
PB  - Atlantis Press
SP  - 202
EP  - 205
SN  - 2352-5428
UR  - https://doi.org/10.2991/iscde-19.2019.92
DO  - 10.2991/iscde-19.2019.92
ID  - Plotnikov2019/12
ER  -