Dissertations / Theses on the topic 'Goodwill valuation'

Background:

In Sweden Internet was introduced in 1983 and IT became a popular phe-nomenon in the 1990s. In the middle of this decade IT-companies had a prosperous period. Many companies acquired competitors frequently dur-ing these years in order to build brand names and stay competitive. More than 400 IT-companies went bankrupt during 2001, due to the burst of the IT-bubble. Today, there is no doubt that IT-companies are willing to acquire other companies in the industry. Before an acquisition both the purchaser and seller do a careful valuation of the current company, using different valuation methods. Lately, there are some IT-companies in the area of Jönköping and its surroundings that have carried out acquisitions.

Purpose:

In this thesis IT-companies in the area of Jönköping are considered in or-der to describe what valuation methods that are used when valuing these before an acquisition. Intangible assets are of great importance for this in-dustry. Therefore the aim is also to find out which these are and how they are valued.

Method:

In order to fulfill the purpose a qualitative research is maintained. Primary data is collected from two telephone interviews and six face-to-face inter-views. Three of the interviews are conducted with people working at IT-companies that have carried out an acquisition between 2006 and 2008. The other interviews were performed with people working with business valuation on a daily basis.

Conclusion:

When valuing IT-companies as well as the intangible assets, where good-will is significant due to synergies, the net present value approach is most commonly used. The relative valuation approach is also useful, especially for companies in the early phase of the life cycle since these do not show any historical facts. Within the IT-industry; P/S, P/E, and value per em-ployee, are all useful. The net asset value approach is the most common before a direct acquisition. In this research indirect acquisitions are most often applied.

Bakgrund:

I Sverige introducerades internet 1983 och IT blev ett populärt fenomen under 1990-talet. I mitten av decenniet hade IT-företagen en blomstrande period. Många företag förvärvade konkurrenter ofta för att skapa varu-märke och fortsätta vara konkurrenskraftiga. Över 400 IT-företag gick i konkurs under 2001 på grund av IT-bubblan. Idag är det ingen tvekan om att IT-företag är villiga att förvärva andra företag i denna industri. Innan ett förvärv genomför både förvärvaren och säljaren en noggrann värdering av det aktuella företaget med användning av olika värderingsmetoder. Det finns några IT-företag i Jönköpingsregionen som genomfört företagsför-värv på sista tiden.

Syfte:

Syftet i denna uppsats är att beskriva vilka värderingsmetoder IT-företag i Jönköpingsregionen använder vid värdering innan ett företagsförvärv. Immateriella tillgångar är viktiga i denna industri. Därför är syftet även att identifiera dessa och se hur de värderas.

Metod:

För att uppfylla syftet används en kvalitativ metod. Primärdata är insamlad från två telefonintervjuer och de andra sex på intervjuobjektens kontor. Tre intervjuer genomfördes med personer som arbetar på IT-företag som genomfört företagsförvärv mellan 2006 och 2008. De andra intervjuerna genomfördes med personer som arbetar med företagsvärdering dagligen.

Slutsats:

Vid värdering av IT-företag såväl som de immateriella tillgångarna, främst goodwill tack vare synergier, används i första hand avkastningsvärdering. Relativvärdering är också användbar, särskilt för företag i det tidiga skedet av livscykeln då ingen historisk information finns att tillgå. Inom IT-industrin är; P/S, P/E och värde per anställd, alla användbara. Substans-värdering är vanligast vid ett direkt förvärv. I denna studie är indirekta förvärv oftast förekommande.

The diploma thesis is focused on goodwill, which can occur during mergers of companies in the Czech Republic. The beginning of the theoretical part is devoted to the definition of the term goodwill, summary of the history of that accounting item and explanation of the types of business transformations. It is followed by comprehensive description of recognition and reporting of goodwill and valuation difference on acquired assets in accounting during domestic mergers. The thesis is supplemented by references to specific statutory regulations relating to the manner and timing of the recognition of these items. The whole thesis is focused exclusively on mergers in the Czech Republic. The application part contains information about research and analysis of selected domestic mergers realized in years 2012 and 2013. The most important conclusion of the analysis is that goodwill occurs very rarely during mergers in the Czech Republic.

Goodwill är ett kontroversiellt begrepp och har varit mycket omdiskuterat inom redovisningslitteraturen. På senare år har andelen redovisad goodwill ökat och blivit en betydande post i företagets balansräkningar. Enligt IFRS 3 ska anskaffad goodwill beräknas som skillnaden mellan köpeskillingen och identifierbara tillgångar och skulder. Eftersom goodwill ofta baseras på ett restvärde och att både IFRS 3 och IAS 36 uppmanar användarna att göra subjektiva bedömningar skapas utrymme för manipulation i redovisningen. Anledningen till det är att redovisningsdata ofta används som underlag för att mäta chefers prestation. Goodwill skapar därför utrymme för cheferna att efter egen bedömning rapportera om postens värde både initialt och i samband med nedskrivningsprövningar. Bedömningarna motiveras ofta med att goodwill förväntas bidra med framtida kassaflöden. Då det är svårt att kunna beräkna och kontrollera framtida kassaflöden på ett tillförlitligt sätt är det intressant att undersöka hur företag motiverar sina värden på goodwill.Syftet med denna studie är därför att skapa en förståelse för vilka effekter IFRS har på redovisningen av goodwill och att undersöka chefers motiv till goodwillredovisning. De frågeställningar som studien baseras på är på vilken grund initialvärdet av goodwill fastställs samt på vilket omdöme nedskrivningen av goodwill baseras. Studien omfattar 12 olika bolag noterade på OMX Stockholm Large Cap. En innehållsanalys har gjorts baserad på årsredovisningar från respektive företag mellan åren 2010 och 2012. För att besvara frågeställningarna har teori och empiri varvats och omtolkats med hjälp av varandra. De teorier som har använts är principal- och agentteorin samt enhetsteorin. Teorin, grundläggande redovisningsprinciper och standards har utgjort en grund för förståelse av empirin. På så vis har mönster observerats som har bidragit till att förstå och tolka på vilka grunder goodwillposten värderas.Studiens resultat bidrar till att visa att det i dagsläget inte finns något sätt att säkerställa att goodwill genererar de positiva synergieffekter som ledningen i företagen initialt påstår att posten kommer att göra. Anledningen till det är att posten grundas på bedömningar som är svåra och kanske omöjliga att verifiera. Därför kan upplysningarna kring goodwill anses vara spekulativa. Studien pekar även på att det kan finnas underliggande motiv som påverkar chefernas värdering av goodwill både initialt och i samband med nedskrivningsprövningar.
Program: Civilekonomprogrammet

Sammanfattning

Titel:   Goodwill – att vara eller icke vara: En studie om revisorers syn på goodwill och granskningen av den i onoterade bolag.

Seminarium: 2010-06-03

Institution:     Mälardalens högskola, Akademin för hållbar samhälls- och teknikutveckling

Kurs:                Kandidatuppsats i företagsekonomi, 15hp

Författare:      Emilie Båvner, Emelie Melin, Michael Sundh                              

Handledare: Ulla Pettersson

Examinator:   Cecilia Lindh

Nyckelord:     Goodwill, granskning, revisor, värdering, avskrivning

Problemformulering:   Hur värderas de framtida fördelar som goodwillen innebär och varför? Hur granskar revisorer den värderingen?

Upplever revisorer några problem med goodwill vid granskningstillfället, varför eller varför inte?

Vad har revisorer för syn på goodwill som en tillgång och varför?

Syfte:   Uppsatsens syfte är att skapa en ökad förståelse för begreppet och revisorers syn på arbetet med goodwillposten. Syftet är även att beskriva vad begreppet innebär och vad revisorsprofessionen har för syn på goodwill. Vidare undersöks hur de intervjuade revisorerna går till väga vid en värdering av goodwill vid granskningstillfället samt om granskningen upplevs som problematisk.

Metod:  I uppsatsen tillämpas en kvalitativ metod för att få en djupare förståelse kring hur revisorer ser på goodwill. De primärdata som ligger till grund för uppsatsens empiriska del utgörs av tre personliga intervjuer. Intervjufrågorna är öppet formulerade för att återspegla revisorernas egna tankar.

Slutsats:  Bland de intervjuade revisorerna råder skilda meningar angående om något problem upplevs med goodwill. Ett problem grundar sig på att det är svårt att bedöma den framtida nytta som goodwill innebär. Kassaflödesmodeller används för att värdera ett företag som eventuellt ska förvärvas. Det värdet används sedan i förvärvsanalysen som i sin tur frambringar ett goodwillvärde. De intervjuade revisorerna har svårt att se goodwill som något annat än en tillgång, då ett företag varit villigt att betala ett överpris vid förvärvet.

Abstract

Title:   Goodwill – to be or not to be: A study on auditor's view of goodwill and the examination of it in unlisted companies.

Seminar date:   2010-06-03

Institution:  Mälardalens Högskola, School of Sustainable Development of Society and Technology

Course:  Bachelor thesis in business administration, 15 credits

Authors:  Emilie Båvner, Emelie Melin, Michael Sundh

Advisor:   Ulla Pettersson

Examiner:   Cecilia Lindh

Keywords:   Goodwill, revision, auditor, valuation, amortization

The main issue:  How are the future benefits of goodwill valued and why? How do auditors revise that valuation?                          

Do auditors experience any problems with goodwill at the audit, why or why not?

What are auditors’ opinions of goodwill as an asset and why?

Purpose:  The purpose is to create a better understanding of the concept of goodwill and auditors opinion about working with goodwill. The purpose is also to describe what the concept means and which opinions the interviewed auditors have of goodwill. The thesis examines furthermore how auditors approach a valuation of goodwill at the audit and if the revision is perceived as problematic.

Method:   In the thesis we have used a qualitative method in order to get a deeper understanding about auditors’ opinion of goodwill. The primary data, which forms the basis for the empirical part of the thesis, consists of three personal interviews. The questions in the interviews are openly formulated to reflect the auditors’ own thoughts.

Conclusion:  There are different opinions among the interviewed auditors about having any problems experienced with goodwill. One problem is based on the difficulty of estimating the future benefits that goodwill means. Cash flow models are used to determine the value of a company that might be acquired. This value is then applied in the acquisition analysis that brings forth goodwill. The interviewed auditors think it is difficult to see goodwill as anything but an asset, since a buying company have actually been willing to pay an overprice by the acquisition.

The fundamental approach to measuring goodwill in franchisee-operated businesses is the same for any other business models. However, the difference lies in the methodology, more particularly in the calculation of a risk premium, the identification of cash-flows, and the evaluation of the franchise system. Franchisees are common law agents and are not free agents, unlike their counterparts that operate independent businesses. They are prescriptively created, governed, and terminated by contracts that are determined and controlled by their principal. As principals, franchisors rely on franchisees to do that which they cannot do themselves with equal efficiency. In order to facilitate this arrangement, they enter detailed contracts that express their reciprocal intentions and expectations. These include such things as performance standard, revenue sharing, risk allocation, operational protocol, and intellectual property rights. In fact, franchisors insist on retaining proprietary rights to all intellectual property and instead grants to the franchisee a contractual right to use it for a limited period. During that period, franchisees have to mobilise their financial and intellectual capital to leverage the intellectual property for cash-flow generation. This process often generates valuable goodwill. Arguably, goodwill exists, where the total value of cash-flows generated from the business exceeds the opportunity cost of net tangible assets employed in the business.
Thesis (PhD Doctorate)
Doctor of Philosophy (PhD)
Griffith Business School
Griffith Business School
Full Text

Bakgrund/problemområde: Goodwill har under en lång tid varit underlag för en rad studier om hur företagen redovisar och ska redovisa goodwill. IFRS baserar värderingen av goodwill på att företagsledningarna ska göra subjektiva bedömningar i form av uppskattningar och antaganden. Detta uppmuntrar vissa företag till att välja tillvägagångssätt som ger ett önskvärt resultat hos företagsledningen. Goodwill speglar den framtida intjäningsförmågan hos det förvärvade företaget och relaterar därmed till värderingen av verksamheten som en helhet. Det finns indikationer på att den information som bankerna ger ut gällande framtida goodwillnedskrivningar är avgörande för intressenterna i deras bedömning om bankernas prestationer över tiden. Studien fokuserar på fyra svenska bankers redovisning av goodwill, vilka innehar andelar i Baltikum. I en utgiven artikel av DN (2011-01-20) ”Borg: Vi var illa ute 2009” förklarar finansminister Anders Borg att det inte var många som förstod hur illa ute Sverige var när krisen i Lettland hade blivit ett faktum och Internationella valutafonden väntade. I studien granskades bankernas kvalitet på goodwillredovisningen.Frågor/syfte: Studiens huvudfråga är ”Hur redovisade Swedbank, SEB, Nordea och Handelsbanken goodwillen i Baltikum under år 2006 och 2009?” Huvudsyftet med studien är att genom ett deskriptivt och komparativt sätt se hur bankerna tolkade begreppet goodwill utifrån IFRS. Det vill säga hur de värderade och redovisade goodwillen i Baltikum utifrån IFRS år 2006 och 2009.Metod/teori: I studien antog vi ett tolkande tillvägagångssätt för att undersöka redovisningens kvalitet i de fyra bankernas årsredovisningar. I årsredovisningarna tolkade vi både kvalitativa och kvantitativa redovisningsdata. Vi gjorde en institutionell analys av IASB’s standarder för att se hur dessa tolkades i relation till de svenska normerna och den svenska redovisningskulturen. Senare i studien genomförde vi en deskriptiv och komparativ analys av textmaterialet i bankernas årsredovisningar i förhållande till IFRS och studiens teoretiska referensram. Två värderingsproblem kunde identifieras i litteraturen; (1) goodwillvärderingar baseras på förhandlande, vilket är en mycket subjektiv form vid bedömningen av goodwillens värde, och (2) ledningens ansvar är bortkopplat från goodwillredovisningen, eftersom att upplysningar om nedskrivningsprövningar är ofullständiga om hur goodwillens värde upprätthålls och förbättras.Studiens resultat: För att få kunskap om kvaliteten i bankernas goodwillvärderingar och goodwillredovisningar, så studerade vi de fyra bankernas tillvägagångssätt i samband med värdering och redovisning av goodwill. Vi fick reda på att; (a) det finns variationer i bankernas uppskattningar om värdet av goodwill som är svåra att hitta en rimlig förklaring på, (b) det konstaterades även att ledningarna är beroende av kriterier för nedskrivning och att de hade svårt att uppskatta goodwillens värde, (c) ett annat problem bland bankerna är att de hade svårt att uppskatta goodwillens livslängd, eftersom goodwill består av delar med olika livslängd, och (d) det sista kritiska resultatet är att bankernas upplysningar om goodwillvärderingar är kopplat till vilka upplysningar de ska ge och vilka upplysningar de inte ska ge. På grund av problemen med a, b och c så har de fyra bankerna svårt att lämna tillräckligt kvalitativ information om goodwillvärderingar i årsredovisningarna.
Program: Civilekonomprogrammet

O presente trabalho tem como objetivo principal demonstrar que parcela da base de depositantes de instituições financeiras que se utilizam de depósitos (a prazo e a vista) como fonte de financiamento das suas atividades, identificada pelos depósitos estáveis, representa um ativo intangível da instituição depositária. Esse ativo intangível decorrente dos depósitos estáveis, quando passível de identificação específica, explica parte do goodwill da instituição depositária, pelo fato do goodwill ser um ativo residual dependente principalmente da avaliação da empresa como um todo. Sendo o valor do goodwill determinado pela diferença entre o fair value da entidade como um todo, como um ativo único em continuidade, e a soma algébrica dos fair values dos ativos líquidos identificáveis dessa entidade, à medida que novos ativos antes não contabilizados são identificados, está-se explicado a natureza do goodwill, assim como está-se auxiliando na sua atribuição de valor. Portanto a identificação de mais um ativo intangível das instituições financeiras implica na identificação de parcelas componentes do goodwill, que englobava esse ativo intangível antes da identificação do ativo intangível, assim como também implica na explicação econômica de parte do goodwill. Para que o objetivo pudesse ser alcançado, comparou-se as características econômicas e contábeis dos ativos, dos ativos intangíveis e do goodwill com as características econômicas e contábeis dos depósitos estáveis, chegando-se à conclusão de que tais depósitos representam um ativo intangível, identificável em separado e passível de registro contábil. O registro contábil desse ativo intangível nas demonstrações contábeis utilizadas para fins de publicação é atualmente possível somente quando a instituição depositária tiver sido objeto de compra por outra entidade. Caso isso não tenha ocorrido, alternativamente pode-se fazer uso do ativo intangível para fins de controle gerencial. O trabalho também apresenta um caso real de avaliação dos depósitos estáveis como forma de corroborar a possibilidade de identificação e avaliação do ativo intangível decorrente desses depósitos.
The main objective of the present work is to demonstrate that a part of the depository base of financial institutions that make use of (time and demand) deposits as a source of funding for their activities, which is identified by stable deposits, represents an intangible asset of the depositary institution. When its specific identification is possible, this intangible asset, which results from the stable deposits, explains a part of the goodwill of the depositary institution, considering that goodwill is a residual asset that mainly depends on the valuation of the company as a whole. As the value of goodwill is determined by the difference between the fair value of the entity as a whole, that is, as a unique asset in a going concern, and the algebraic sum of the fair values of the entity’s identifiable net assets, to the extent that new assets are identified, which were not recorded before, the nature of goodwill is explained and its value attribution is enhanced. Hence, the identification of another intangible asset in the financial institutions implies the identification of new parts of the goodwill, which incorporated this intangible asset before the identification of the intangible asset, as well as the explanation of the economic nature of goodwill. To achieve this goal, the economic and accounting characteristics of assets, intangible assets and goodwill were compared to the economic and accounting characteristics of the stable deposits, which led to the conclusion that those deposits represent an intangible asset, which can be identified separately and can be registered in the accounting records. The accounting record of this intangible asset in the financial statements, which are used for publication, is only possible nowadays when the depositary institution has been the target of a purchase by another entity. In case this has not happened, the intangible asset can alternatively be used for management control. The present work also presents a real case of stable deposit valuation, so as to corroborate the possibility of identification and valuation of intangibles resulting from the stable deposits.

The purpose of this thesis is to analyse and compare the transfer pricing approaches held by the OECD, Germany and the United States when transferring an ongoing concern. The term “ongoing concern” in the OECD Transfer Pricing Guidelines is to be interpreted as very wide and to cover every case where a function is bundled with assets and risks. Even though there is no legal definition of the term , the definition of the OECD can still be said to represent the common definition of the term. When transferring an ongoing concern or a function the three approaches are all that it should be given a value that independent enterprises under similar circumstances would agree upon. Besides some particular cases, the OECD and German approach is that the function, assets and risks should be aggregated when determining the arm’s length price. The approach of United States is somewhat different, where an aggregation of the transactions is not always the case and goodwill and going concern value are not subject to the transfer pricing legislation. The comparability approaches and the transfer pricing methodologies of the three are is very similar, where some factors should be taken into account when determinign the comparability between two transactions and with the selection of the most appropriate transfer pricing method applied to the transaction. The comparable uncontrolled price method should be seen as a primary transfer pricing method, and if it is not possible to find comparable transactions or to make reasonable accurate adjustments the profit split method should be applied. The hypothetical arm´s length test is the method that would be applied in such case according to the German legislation. The selection of which valuation method to apply to the transfer depends on the facts and circumstances of the transfer.

The diploma thesis focuses on comparing the accounting treatment and reporting of intangible assets in accordance with rules in the CR and IFRS. This thesis is concentrated on finding significant differences. A practical example shows the form of intangible assets in practice a few selected companies from different sectors.

This thesis deals with the requirements of how to approach the issue of testing the value of assets in accounting and recognition of an impairment loss under IFRS and U.S. GAAP. The main objective was to create a comprehensive view of this specific area, eventually determine differences in accounting and reporting between IFRS and US GAAP. There is mostly characteristic of IAS 36 Impairment of Assets and SFAS 144 Accounting for the Impairment or Disposal of Long-Lived Assets, which specify when and how to entity test, identify, report impairment loss. The work also describes the basics of valuation of assets, mainly deals with the measurement by using historical cost and fair value.

Ma thèse s'intéresse à la théorie financière de l'entreprise qui émerge entre 1880 et 1929, ainsi qu’à l’apport de Veblen.Tout d'abord nous mettons en exergue les contributions analytique et macroéconomique que livre Veblen concernant la business enterprise. Il met en avant un triptyque crédit-actions-goodwill grâce auquel nous affirmons qu'il est un théoricien "pré-moderne" de la finance d'entreprise. Sa vision du goodwill lui permet de dresser une théorie de l'investissement qui s'ancre dans la filiation de la Q-Theory. Il propose ainsi un regard pionnier sur le management d'entreprise, avec son analyse du comportement de l'insider et de l'outsider. Dans un second temps, à travers un travail d'archives et une investigation dans les premiers manuels de finance d'entreprise, nous présentons une lecture de l'émergence de cette discipline académique, issue de la pratique des grandes entreprises. Un premier vocabulaire et les premières théories émergent. Par ailleurs, un débat plus large prend place concernant l'éducation aux Etats-Unis et l'institutionnalisation de l'enseignement des affaires dans la higher education, auquel Veblen prend part
My PhD dissertation focuses on the theory of the corporate finance that emerged between 1880 and 1929, as well as the contribution of Veblen.First, we highlight Veblen’s analytical and macroeconomic contributions to the business enterprise. He highlights a trinity credit-equity-goodwill by which we assert that he is a "pre-modern" theorist of corporate finance. His vision of goodwill allows him to draw up a theory of investment that is rooted in the affiliation of the Q-Theory. It thus offers a pioneering look at the management of an enterprise, with its analysis of the behavior of the insider and the outsider.Secondly, through an archival work and an investigation into the first corporate finance manuals, we present a reading of the emergence of this academic discipline, resulting from the practice of large companies. A first vocabulary and the first theories emerge. In addition, there is a wider debate about education in the United States and the institutionalization of business education in higher education, in which Veblen takes part

Mestrado em Gestão/MBA
A presente dissertação contém uma análise dos vários métodos de reconhecimento da marca como activo da empresa, em conformidade com as normas de contabilidade existentes. Destaca-se a natureza restritiva da marca como activo, a qual, historicamente esteve ligada à contabilização do goodwilí adquirido. O requisito restritivo para reconhecimento da marca como activo, deriva unicamente de uma "transacção ou acontecimento", o que exclui o reconhecimento das marcas geradas internamente. Analisam-se também as últimas normas contabilísticas aprovadas pelo International Accounting Standards Board (IASB), de entre as quais se salienta a NIC 38 (Activos Intangíveis) para avaliar de que forma é que o reconhecimento da marca continuará no futuro a permanecer restritivo.
This dissertation contains an analysis of the different brand asset recognition methods in compliance with the existing accounting standards. It is distinguished the restrictive nature of a brand asset, which historically was attachment to purchased goodwill. The restrictive requirement for brand asset recognition, derived solely from a 'transaction or event", which excludes the recognition of internally generated brand. It examines also the latest accounting standards, approved by International Accounting Standards Board (IASB), among which stresses the IAS 38 (Intangible Assets), to assess whether the recognition of brand asset in the future will continue to remain restrictive.

Work is about corporation mergers in the first place in Czech Republic and about valuation issues. It brings comprehensive view into particular business areas in which are mergeres concerned. It is going about business-legal area, tax and accounting area. Particular sections about these areas are supplemented by the role of the expert in valuation and his opinion. Whole work is ilustrated by the exapmple from praxis.

This thesis is focused on mergers with an emphasis on valuation. It deals mainly with economic, legal, accounting and tax aspects. These aspects are enriched by the amendment of laws that come into legal force from 2012. The thesis is complemented by expert valuation process, without which most of the mergers could not be realized. Final part of this thesis describes concrete national merger of three companies stating the accounting treatment.

This diploma work focuses on the issue of valuation of a company and implementing the theoretical findings obtained through various methods into the specific situation of CS Expres joint-stock company which transports individual packages. The practical part of the work provides financial and strategical analysis of the company. The valuation of the company suggestion is carried out with the help of theoretical methods, but also by establishment of specific criteria which can be used to estimate the real price of the company.

There is a significant number of differences between the Czech accounting legislation and the International Financial Reporting standards in the area of posting and presentation of non-current assets. These are eliminated by the process of harmonization within the European Union. Harmonization process shows clear advantages for the users of financial information; however, the process is still not fully completed. Continuous changes in accounting rules also bring to business a lot of complications and additional costs. The diploma thesis presents a comparison of both accounting conceptions; shows a discussion on their advantages and disadvantages and demonstrates the impact of different approaches to booking for non-current assets to the financial statements of a business entity.

The thesis is focused on the process and progress of business combinations under both IFRS and in accordance with Czech legislation. The first part describes the history of the business combination, their origin, development, and gradual changes from the past to the present. The following part focuses on the process and the types of transactions with companies under Czech legislation. The last chapter is focused on the differences and form IFRS and Czech legislation.

The aim of the master’s thesis is to analyze potential of methodical approach during construction company evaluation in the period of economical fluctuation. Building industry is the activity that is very sensitive towards market and economy swings. Their impacts significantly influence the attitude towards evaluation and prize in the building industry. Construction companies are affected by economy swings. Therefore, in my master’s thesis, I analyze different approaches towards their evaluation and also methods of the prize determination.

碩士
國立臺北大學
會計學系
105
This study examines the valuation difference of intangible assets’ information for the pre- and the post- adoption IFRS periods in Taiwan, for Taiwan listed companies during the period from 2007 to 2015. This study focuses on：(1) To examine whether the intangible assets’ information after adoption of IFRSs is useful to investors in valuing the firm; further, separating the components of intangible assets as the goodwill and the non-goodwill intangibles, this study also respectively examine the valuation difference of the two components for pre- and post- adoption IFRSs. (2) To examine whether the intangible assets’ information （the information of the goodwill and the non-goodwill intangibles） after adoption of IFRSs is useful to investors in valuing the firm for higher intangible assets intensity companies. (3) To examine whether the intangible assets’ information （the information of the goodwill and the non-goodwill intangibles） after adoption of IFRSs is useful to investors in valuing the firm for higher institutional investors holding companies. The empirical results show that：(1) Comparing with the pre IFRSs period, there is more value relevance to the investors within the post-IFRSs period, meanwhile two components (the goodwill and the non-goodwill intangibles) of intangible assets both have more value relevance to the investors. (2) In higher intangible assets intensity companies, comparing with the pre IFRSs period, there is more value relevance to the investors within the post-IFRSs period, meanwhile two components of intangible assets both have more value relevance to the investors. (3) In higher institutional investor holding companies, comparing with the pre IFRSs period, there is more value relevance to the investors within the post-IFRSs period, meanwhile two components of intangible assets both are more value relevance to the investors. The empirical results fit in the expectation of this study and support that IFRSs can provide higher quality and more relevant intangible assets information of financial statement to the investors. Furthermore, in higher intangible assets intensity and higher institutional investor holding companies, the information of intangible assets and those components have more value relevance to the investors.

A presente investigação pretende explicar a diferença entre o valor de mercado e o valor contabilístico de bancos comerciais, através de variáveis contabilísticas específicas. Este estudo aplica o modelo proposto por Begley, Chamberlain e Li (2006) a uma amostra composta por bancos sedeados na Zona Euro. O modelo relaciona variáveis contabilísticas específicas de bancos com a diferença entre valor de mercado e valor contabilístico (goodwill), criando uma perspectiva do negócio da banca assente em actividades associadas a determinados activos e passivos. O modelo identifica as actividades de concessão de crédito (CC) e de tomada de depósitos (TD) como determinantes na definição do goodwill, correspondentes ao papel tradicional da banca de intermediação financeira. Os resultados empíricos demonstram que o goodwill dos bancos da Zona Euro deriva fundamentalmente da CC. Da TD não deriva valor para além do seu valor contabilístico, apesar de os rendimentos de serviços a clientes recebidos na forma de comissões incorporarem valor futuro, já que é esperado que o relacionamento entre os clientes e o banco perdure. Resultados sugerem que os serviços a clientes dos bancos da Zona Euro estão associados à CC em detrimento da TD. Contudo, tal como observado em estudos anteriores, fica patente a indicação de que as actividades identificadas apresentam um alcance limitado sobre o negócio da banca, pois os activos e passivos operacionais designados não contemplam todos os itens não valorizados ao seu valor de mercado no balanço dos bancos. Esta conclusão aponta para a inclusão de futuras expansões do modelo.
The present research aims to explain the difference between market and book value of banks, through bank-specific accounting measures. This study applies the theoretical model proposed by Begley, Chamberlain and Li (2006) on a sample composed by banks settled on Eurozone. Focused on banking business dynamics and its unique specificity, this line of work outstands against the prevalence of manufacturing settings on valuation research literature. The model relates banking-specific accounting measures with the difference between market and book value (which corresponds to goodwill), creating an activity-based perspective of banking business with associated financial assets and liabilities. The model identifies lending and borrowing activities as the key value drivers of goodwill, embodying the banking traditional role of financial intermediation of deposits/loans. Empirical proof states that Eurozone banks unrecorded value lies mostly on lending activity rather than on borrowing activity. Deposit taking does not endorse additional value beyond its book value, although fee income garnered through financial services provided to customers is recognized to incorporate future value, since it is expected that the relationship between the bank and the customer endures. Thus, results suggested that fee income of Eurozone banks is further associated with lending activity than with deposit taking activity. Nonetheless, as observed in previous research, empirical evidence shows that lending and borrowing activities encompass a limited scope of banking business, since designated operational assets and liabilities did not contemplate every item not marked-to-market on banks balance sheet. This conclusion points towards the inclusion of future modeling expansions.

碩士
國立臺北大學
會計學系
104
Since Taiwan’s full adoption of IFRSs in 2013, the listed companies are required to prepare financial information based on ROC GAAP and IFRSs in 2012 by the Financial Supervisory Commition. In addition, resulting from the exemption of the retroactive application of IFRS 3 “Business Combation”, some firms opt to retroactively apply IFRS 3, while others opt to apply IFRS 3 prospectively. Applying Ohlson’s model (1995) to sampling period from 2012 to 2014, this paper examines whether the valuation revelance of the goodwill information under ROC GAAP 25 is different from the valuation revelance of the goodwill information under IFRS 3 . The empirical results include: (1) after the adoption of IFRS 3, goodwill measured under IFRS 3 is incrementally more value-relevant in comparison of goodwill measured under IFRS 3; (2) the test results using the sub-sample show that the explanatory power of the goodwill measured under IFRS 3 is larger than that of the goodwill measured under ROC GAAP 25; (3) additionally, gain on bargain purchase is associated with share price positively, supporting the IASB’s view of recognizing gain on bargain purchase. This paper provides supporting evidence of the adoption of IFRS 3. Investors may take goodwill and gain on bargain purchase into consideration when making investing decisions and should understand that the information content of the goodwill information under IFRSs is more than the goodwill information under ROC GAAP.

The principal goal of this research study was to critically evaluate the current accounting treatment of purchased goodwill in terms of a theoretical framework established, including an evaluation of the true nature of goodwill. The main conclusion of this study is that goodwill is an intangible asset representing various intangible factors contributing to the enterprise's earning capacity and providing returns in excess of a normal return on assets employed for which an acquiring enterprise is willing to pay an amount in excess of the fair value of the identifiable net assets acquired. The cost of purchased goodwill is measured as the difference between the total purchase price and the fair value of the net assets acquired after ensuring that all assets, tangible and intangible, had been properly identified. Purchased goodwill should be amortised over the estimated period that the enterprise is expected to benefit from the acquisition of the goodwill.
Financial Accounting
M. Com. (Accounting Science (Applied Accountancy))

The objective of this project is to perform a firm valuation analysis of Lending Club, using the Free Cash Flow method and multiples in order to provide insight on the valuation of a company with negative income. Let us know deeply of financial technology (Fintech). Original data was collected via Lending Club‘s website. The FCFF and relative valuation methods were used in the valuation of the target firm. The results reveal that the P/S ratio and EV/Sales ratio are suitable for the valuation of high-tech companies, which are not yet profitable. The most critical factor for Fintech companies is goodwill and the reason why Lending Club suffers a setback is goodwill impairment. Even though a developing industry usually has many problems in terms of supervision, information safety and management, the prospect is still lactiferous. This empirical study helps to understand the benefits and risk factors associated with Fintech and the valuation method for companies with ailing financial health.
Este projeto visa realizar uma avaliação da empresa Lending Club, usando o método do Free Cash Flow e dos múltiplos, fornecendo informações sobre a avaliação de uma empresa com resultados negativos. Esta avaliação permite adquirir informação relevante sobre as empresas de tecnologia financeira (Fintech). Os dados originais sobre a empresa foram obtidos através do seu website. Os resultados revelam que os rácios P/S e EV/Vendas são adequados para a avaliação de empresas de tecnologia de ponta, que ainda não são rentáveis. O fator mais crítico para as empresas de Fintech é o goodwill, razão pela qual a Lending Club sofreu um revés na deterioração do seu goodwill. Mesmo que esta indústria em desenvolvimento tenha problemas em termos de supervisão, segurança da informação e de gestão, a perspetiva ainda é favorável. Este estudo empírico ajuda a entender os benefícios e fatores de risco associados às Fintech e aos métodos de avaliação para empresas com problemas de saúde financeira.

The goal of this paper is to determine and to quantify how subjective brand valuation is. To do so, we review the different valuation methods and apply the Hirose model to a sample of 20 US companies from the technology sector. Even if the results vary in function of the rankings we choose as a comparison, we may identify the trend that brands are usually overvalued in those rankings. It explains why internally generated goodwill (which includes brand names) is not recognized as an intangible asset in the financial statements.

Величина деловой репутации (гудвилла) приобретает все больший вес в рыночной стоимости промышленных предприятий. Однако универсальной методики оценки гудвилла на сегодняшний день не выработано. Целью данной работы является разработка и апробация методического подхода к оценке внутренне созданного гудвилла промышленного предприятия. В первой главе диссертации проведена идентификация терминов «деловая репутация» и «гудвилл», а также показаны практики оценки гудвилла на российских предприятиях. Во второй главе диссертационного исследования рассмотрены и классифицированы существующие методы оценки гудвилла; проведен критический анализ каждого из представленных методов – показаны их достоинства, недостатки и границы применения; представлена специфика полиграфической отрасли и показано ее влияние на выбор методики оценки гудвилла; разработан авторский методический подход к оценке внутренне созданного гудвилла промышленного предприятия. В третьей главе диссертационного исследования представлена характеристика предприятия ООО «ОКИЛ-САТО Урал» как субъекта экономической деятельности; проведена апробация разработанного методического подхода и получена оценка внутренне созданного гудвилла предприятия ООО «ОКИЛ-САТО Урал»; показаны возможности адаптации разработанного методического подхода в условиях слабой информационно-аналитической базы.
The value of goodwill is gaining increasing weight in the market value of industrial enterprises. However, a generally accepted methodology for goodwill valuation has not been developed to date. The purpose of this work is to develop and test a methodological approach to the valuation of internally created goodwill of an industrial enterprise. The first chapter of the thesis identifies the terms "business reputation" and "goodwill", and shows the experience of valuing goodwill in Russian enterprises. In the second chapter of the thesis, existing methods for valuing goodwill are reviewed and classified; a critical analysis of each of the methods presented is carried out – there are shown advantages, disadvantages and limits of application of each methods; the specificity of the printing industry is presented and its influence on the choice of goodwill valuation methods is shown; the author's methodological approach to the valuation of internally created goodwill of an industrial enterprise is developed. In the third chapter of the dissertation research the characteristic of the company "OKIL-SATO Ural" is presented; the implementation of the developed methodical approach is carried out and the value of internally created goodwill of the LLC OKIL-SATO Ural enterprise is obtained; the ways of adaptation of the developed methodological approach are shown, especially in the conditions of weak information and analytical base.

Дисертацію присвячено поглибленню теоретичних засад визнання та оцінки клієнтської бази як нематеріального активу банку, удосконаленню методичних основ та практичних рекомендацій з облікової оцінки вартості клієнтської бази банку. У дисертації проведено комплексне дослідження питання оцінки та визнання клієнтської бази як нематеріального активу банку. Розглянуто економічну сутність поняття «клієнтська база», її структуру та критерії визнання клієнтської бази як активу, одержаного в результаті об’єднання банків. Обґрунтовано застосування доходного підходу для оцінки клієнтської бази та розкрито основні етапи визначення вартості з урахуванням особливостей оцінки вартості банківського бізнесу. На основі проведеного дослідження сформовано комплексний методичний підхід для визначення вартості клієнтської бази як нематеріального активу для цілей визнання активу у фінансовій звітності банків. Відповідну увагу приділено дослідженню питання оцінки клієнтської бази банків за нефінансовими показниками, бухгалтерському відображенню клієнтської бази та розкриттю інформації про клієнтську базу у фінансовій звітності.
Диссертация посвящена исследованию теоретических основ признания и оценки клиентской базы как нематериального актива банка, совершенствованию методических основ и практических рекомендаций по учетной оценке стоимости клиентской базы банка. В диссертации проведено комплексное исследование вопроса оценки и признания клиентской базы как нематериального актива банка. Рассмотрена экономическая сущность понятия «клиентская база» и критерии признания клиентской базы как актива, полученного в результате объединения банков. Учитывая место клиентской базы в структуре активов банка, предложена методика оценки клиентской базы как идентифицированного и неидентифицированного актива банка. Исследованы критерии идентификации нематериальных активов, приобретенных в результате объединения бизнеса. Установлены преимущества признания клиентской базы отдельно от гудвилла, которые обоснованы исследованием списания стоимости гудвилла, распределенного на отечественные банковские дочерние учреждения. Учетную оценку клиентской базы для целей финансовой отчетности предложено проводить на основе объединения элементов качественной и стоимостной оценки, учитывая особенности оценки стоимости банковского бизнеса. Предложено проводить оценку стоимости клиентской базы на основе разделения на две составляющие: нематериальный актив, связанный с базовыми депозитами и взаимоотношения с клиентами. Определено экономическую сущность нематериального актива, связанного с базовыми депозитами банка, как актива, который отражает экономические преимущества, которые получает покупатель при объединении банков. Установлено, что в составе взаимоотношений с клиентами идентифицируют взаимоотношения, которые возникают в результате осуществления операций страхования жизни и управления активами (трастовые операции). Обосновано применение доходного подхода для оценки клиентской базы и раскрыты основные этапы определения стоимости с учетом особенностей оценки стоимости банковского бизнеса. На основе проведенного исследования сформирован комплексный методический подход для определения стоимости клиентской базы как нематериального актива для целей признания актива в финансовой отчетности банков. В рамках применения доходного подхода для оценки клиентской базы предложено использовать метод экономии расходов для оценки НМА, связанного с базовыми депозитами и метод дополнительного дохода – для оценки взаимоотношений с клиентами. В качестве срока полезного использования предложено использовать среднюю продолжительность взаимоотношений с клиентами, рассчитанную на основе показателей оттока клиентов. Рассмотрена методика расчета на основе постоянных показателей оттока и применения актуарного анализа. На основе актуарного анализа подробно исследованы особенности определения показателей оттока и построения кривой выживаемости с помощью функции экспоненциального распределения, которая дает возможность более точно определить показатели удержания клиентов, необходимые для дальнейшего определения стоимости актива. В работе детально проведен анализ применения методов экономии расходов и дополнительной прибыли для оценки стоимости составляющих клиентской базы банка. На основе проведенного анализа предложено проводить расчеты с использованием формул, полученных в результате исследования. Раскрыта сущность понятия «налоговое преимущество» как элемент стоимости актива, который отображает преимущество, получаемое банком при идентификации актива в финансовой отчетности. В качестве альтернативы метода дополнительной прибыли предложено использовать метод преимущества в прибыли, который целесообразно применять, если клиентская база является не основным активом в генерировании денежного потока. Соответствующее внимание уделено исследованию вопроса оценки клиентской базы банков по нефинансовым показателям и раскрытию информации о клиентской базе в финансовой отчетности. Проанализированы нефинансовые показатели оценки клиентской базы, которые влияют на стоимость банковского учреждения. Исследовано международную практику раскрытия информации о клиентской базе банка в составе годового отчета. На основе анализа предложено раскрывать информацию такого рода при помощи составления отчета о клиентской базе банка с раскрытием информации о показателях лояльности, удовлетворенности клиентов и средней продолжительности взаимоотношений с клиентами. Исследованы особенности отражения в бухгалтерском учете клиентской базы как части процесса распределения стоимости приобретения банка. Предложено внести изменения в первичные документы учета нематериальных активов (инвентарная карточка, акт введения в хозяйственный оборот). Предложено раскрывать информацию о критериях идентификации клиентской базы, а также краткие сведения о текущем состоянии клиентской базы банка в примечании 48 «Объединение бизнеса» в случае признания клиентской базы в результате объединения бизнеса.
The dissertation is devoted to deepening theoretical principles for recognizing and measuring customer base as an intangible asset of the bank, improving the methodological bases and practical recommendations on accounting valuation of corporate clients. The dissertation provides a comprehensive study on evaluation and recognition of the customer base as an intangible asset of the bank. The economic essence of the concept of «customer base», its structure and criteria for recognition as an asset, resulting in the merger of banks is researched. The application of the income approach to assess customer base is justified and the main stages of determining the value to the specific valuation of the banking business are revealed. Based on the study the complex methodological approach for the determination the value of customer base for the purposes of the financial statement is formed. Appropriate attention is given to evaluation the customer base of banks by non-financial indicators, the balance display of a customer base and to the disclosure of customer base in the financial statement.

The topic of this thesis titled " Accounting and tax aspects of capital transactions with company in comparison with CZ GAAP and IFRS" was the definition of ownership transactions with the company and description of some differences between both legislation. The accounting and taxation aspects were first analyzed in terms of theory (regu-lations, definition, history of the business combination and their development from the past to the present, present situation of volume of M&A transactions and method of accounting solutions of these transaction) and subsequently in the form of practical application to particular accounting data of two companies named XYZ a KLM. The practical part mostly deals with merger of companies KLM and XYZ. Both of them were limited liability compa-nies with financial problems. The first part of practical part of this thesis was to analyse the transformation project and progress chart. Then the closing balance sheets and income statements (Czech legislations) of XYZ and KLM were compared with balance sheets and statements according to IFRS. The opening balance sheet of the successor of this transaction (XYZ) was compiled by the purchase method with quantifying valuation difference on acquired assets. Mergers and acquisitions are the most frequent business combinations. Sectors of the economy with the highest number of these transactions are the sectors of industrials & chemicals in the world and the sector of Real estate in Czech Republic. The last chapter is focused on the differences and form IFRS and Czech legislation.