In this paper, we analyze the market perception of positive goodwill as an asset for determining valuation of the firm and we find that market perceives positive goodwill as an asset and useful information in the valuation of a firm.We also explore that market values positive goodwill differently from other assets.Whereas, the results of study show that evidence for reporting negative goodwill as a liability item is very weak.With these results of empirical tests, we agree with Financial Accounting Standards Board (F ASE) and Business Accounting Deliberation Council (BADC) about recogizing positive goodwill as an independent asset item; however we are suspicion of usefulness of negative goodwill when it is required by BADC to be reported as a biabilily on belance sheet.In the next section, we review related research, research issues, and then we describe research design and present the results for our examination.We offer some concluding remarks in the final section of the paper.
Le Van Lien (Thu,) studied this question.