Acta Univ. Agric. Silvic. Mendelianae Brun. 2019, 67(5), 1309-1323 | DOI: 10.11118/actaun201967051309

An Empirical Examination of Accounting Comparability: Goodwill Recognition and Disclosure in Selected Central European Countries

Ewa Wanda Maruszewska1, Marzena Strojek-Filus2, Jiří Pospíšil3
1 Department of Business Informatics and International Accounting, Faculty of Finance and Insurance, University of Economics in Katowice, Ul. 1 Maja 50, 40-287 Katowice, Poland
2 Department of Accounting, Faculty of Finance and Accounting, Faculty of Finance and Insurance, University of Economics in Katowice, Ul. 1 Maja 50, 40-287 Katowice, Poland
3 Department of Financial Accounting and Auditing, Faculty of Finance and Accounting, University of Economics Prague, nám. W. Churchilla 1938/4, 130 67 Praha 3, Czech Republic

Over the last few decades, there have been unusually frequent changes in the required accounting rules and methods for measuring and reporting positive and negative goodwill of business entities and capital groups. We suggest that the lack of consistent accounting regulations among Central Eastern European countries in accounting for positive and negative goodwill distorts the economic content of this very important economic resource and therefore its usefulness for decision making is adversely affected. The aim of this study is to investigate accounting regulations for goodwill in Poland, the Czech Republic, and Slovakia. To achieve this goal, a critical analysis of the literature is conducted, and the applicable legal regulations are analysed. An empirical case study regarding goodwill recognition, measurement, and disclosure is presented based on data received from an actual acquisition transaction. Since the three countries studied are neighbours and cross-country acquisitions are important instruments for regional economic development, we issue a call for regional harmonization of local accounting regulations, preferably based on International Financial Reporting Standards (IFRS).

Keywords: accounting comparability, business acquisition accounting, goodwill recognition, negative goodwill
Grants and funding:

This work was supported by the University of Economics Prague under Grant "Relevance of accounting information on the consolidated basis in business and public sector" number 47/2015.

Received: March 8, 2019; Accepted: August 27, 2019; Published: October 31, 2019  Show citation

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Maruszewska, E.W., Strojek-Filus, M., & Pospíšil, J. (2019). An Empirical Examination of Accounting Comparability: Goodwill Recognition and Disclosure in Selected Central European Countries. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 67(5), 1309-1323. doi: 10.11118/actaun201967051309
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