Accounting for Goodwill

This book provides an illuminating analysis of Internally Generated Goodwill from a strategic point of view.The authorlauncheshis strategic analysis from a foundational understanding of Internally Generated Goodwill as determined largely in relationship to intangible resources and competitive differentials. Arguing that intangible resources are at the origin of competitive differential--and accordingly at the origin of the achievement of economic profit--the author showshow Internally Generated Goodwill can be considered as the economic expression of competitive differentials and, therefore, as the expression of the greater firm’s value that originates from those differentials. In addition to offeringthis innovative theoretical framework, the author develops a variety ofpractical tools forgeneratingvalue estimates and value breakdowns of IIG.The masterful analysis provided herefocuses ondeveloping methodsforidentifying the elements that compose IIG and onachieving an accurate estimate of its value, ultimatelyseeking to evaluate the limitations and advantages of the existing variety of approaches to analyzing the constituent parts of IIG and to deviseaccountingpracticesthat will help academics and professionals alike to obtain more significant and lucid results.

Introduction 1. Goodwill: Meaning and Relevance 2.The Valuation of the Internally Generated Goodwill and its Breakdown 3.Business Goodwill and Corporate Goodwill 4.Goodwill and Competitive Heterogeneity: System Goodwill, Positional Goodwill and Firm Capabilities 5. Valuation of Unrecorded Intangible Assets and Reduced Goodwill 6.Integration of the Different Breakdown Approaches Appendix Notes Bibliography Index

Born in Milan in 1966 , Andrea Beretta Zanoni is Full Professor of Business Economics and Business Strategy at the University of Verona. His studies are mainly focused on business strategy, intangible resources and goodwill and, dealing with these items, he has written several books and articles. He is member of AIDEA (Accademia Italiana di Economia Aziendale), of Strategic Management Society, of the European Corporate Governance Institute and of CISEPS (Center for Interdisciplinary Studies in Economics, Psychology and Social Sciences) of the University of Milan Bicocca. He has taken part as key speaker to several italian and international conferences