Increasing internally generated goodwill (IGG) is another way of depicting the rising gap between market and accounting values sometimes referred as the “book-to-market black box”. Existing methods propose to value internally generated goodwill as the present value of abnormal earnings...

Le recours au coût historique et à des techniques d'allègement des bilans comme la titrisation permettent aux banques de disposer d'une marge de manoeuvre en matière comptable. Le développement des marchés financiers et l'orientation actuelle de l'IASC et du FASB en faveur de la juste...

When historical cost is used, the incomes are smoothed in a way that delays the recognition of the financial institutions lessening solvency, especially in the case of fixed rate loans when market rates are decreasing. We study the case of Credit Lyonnais which had the opportunity to transfer...

In this paper we propose a new method to explain the creation and measure the value of internally generated goodwill (IGG). Our method is based on the idea that firm value is affected by interactions between assets used in combination to conduct business. This novel approach contrasts with the...

This study investigates whether European firms reporting under domestic GAAPs exhibit major differences while examining the relationship between their economic (financial, operating and competitive) performance and their recognized intangible investment (RII). Using a five-European-country...

This article focuses on the determinants of goodwill impairment. After reviewing International and US standards related to accounting for goodwill, we identify two types of risk factors that can lead to goodwill impairments: economic factors (e.g., initial overpayment, or a deterioration of the...

This study investigates the extent to which three key summary accounting income figures, namely operating income (OPI), net income (NI) and comprehensive income (CI), provide value-relevant information to investors in major EU capital markets. Using a large sample over the pre-IAS-compliance...