Managerial Choices in the Valuation of Acquired Goodwill in the UK
- 1 December 1991
- journal article
- research article
- Published by Taylor & Francis in Accounting and Business Research
- Vol. 22 (85) , 51-55
- https://doi.org/10.1080/00014788.1991.9729417
Abstract
During the 1980s the UK regulations affecting accounting for acquired goodwill allowed managers to make accounting choices affecting recorded goodwill that best served their particular interests. This paper develops and tests the hypothesis that the proportions of purchase price assigned to separable net assets and consequently to goodwill are affected by gearing (leverage) and other considerations.Keywords
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