Goodwill in the Current Greek Accounting Environment
The growing interest in the issue of intangible assets not only in the scientific community but also in some professional bodies internationally can be explained by several points of view. From the business perspective, enterprises are increasingly motivated by external and internal forces to measure and proactively manage their intangibles. With respect to the issue of intangibles, goodwill has been debated in many countries throughout the world. Despite the numerous efforts and the existence of international accounting standards there is not yet a common accepted accounting treatment for goodwill. This study attempts on the one hand to impress the accounting treatment of goodwill internationally, on the other hand analyses the major subjects in relation to the accounting treatment of goodwill in Greece, since 2005, year where the international accounting standards have been in use for the Greek listed companies. The results indicate that the accounting treatment for the goodwill in Greece, despite the effort for accounting harmonization in Europe from 2005, sustains many differences especially for the no listed companies.
[1] Accounting Principle Board (APB), 1970a, "Business Combinations",
Opinion No.16, New York, NY: APB.
[2] Accounting Standard Board, 1997, Financial Reporting Statement - 10,
"Goodwill and Intangible Assets, UK.
[3] Alexandrakis, A., Pazarskis, M., and Karagiorgos, T., 2010, "Legal
Framework for M&A of Companies in Greece; An Accounting and
Finance Review and a Suggestion of its Reconstruction", ESDO, pp.
280-294, (in Greek).
[4] Alifantis, S. G., 2007, "The Accounting Treatment of Business-s
Goodwill", Honorary Volume for the professor emeritus Ignatiadis, A.,
pp. 3-54.
[5] Anthony, R. N., and Pearlman, L. K., 2003, "Essentials of Accounting",
8th edition, NJ: Prentice Hall.
[6] Australian Accounting Standards Board, AASB 1013, 1996,
"Accounting for Goodwill".
[7] Australian Accounting Standards Board, AASB 3, 2002, "Business
Combinations".
[8] Bellas A., Toudas, K., and Papadatos, C., 2007, "The consequences of
applying International Accounting Standards (IAS) to the financial
statements of Greek companies", 30th Annual Congress of European
Accounting Association, 25-27, April, Lisbon, Portugal.
[9] Bithell, R.A., 1882, "A Counting House Dictionary", George Routledge
& Sons, London.
[10] Bouden, I., and Chantiri-Chaudemanche, R., 2007, "Setting new rules
for Goodwill accounting: the British experience", Open Access
Publications from Universit├â┬®Paris-Dauphine, RePEc:ner:dauphin:urn:
hdl: 123456789/2618.
[11] Bryer, R.A., 1995, "A political economy of SSAP 22: accounting for
goodwill", British Accounting Review, Vol. 27, pp. 283-310.
[12] Caramanis, C., and Papadakis V., 2008, "Implementation of IFRS in
Greece", Athens University of Economics and Business, (in Greek).
[13] Deloitte Touch Tohmatsu, 2008, "Business Combinations and Changes
in Ownership Interests - A Guide to the Revised IFRS - 3 and IAS 27".
[14] Financial Accounting Standard Board (FASB). 1985. Elements of
Financial Statements. Concepts Statement No.6. Paragraphs 25 - 26.
[15] Graeme, W., Dagwell, R., and Windsor, C., 2007, "Implications of the
IFRS goodwill accounting treatment", Managerial Auditing Journal,
Vol. 22, No.9, pp. 862-880.
[16] Haller, A., 2002, "Financial accounting developments in the European
Union: Past events and future prospects", The European Accounting
Review, Vol. 11, No. 1, pp. 153-190.
[17] Hoggett, J.R., and Edwards, L., 2000, "Financial Accounting in
Australia", 4th ed., Wiley, Milton.
[18] International Financial Reporting Standards Foundation, IAS 36, 2007,
"Impairment of Assets".
[19] International Financial Reporting Standards, 2007, Available from:
http://ec. europa.eu/internal_market/accounting/ias_en.htm.
[20] Jerman, M., and Manzin, M., 2008, "Accounting Treatment of Goodwill
in IFRS and US GAAP", Organizacija. Journal of Management,
Informatics and Human Resources, Vol. 41, No.6, pp. 218-225.
[21] Johnson, L. T., and Kimberley, P. R., 1998, "Is Goodwill an Asset?",
Accounting Horizons, Vol. 12, No. 3, pp. 80-93.
[22] KPMG, Greece, Mergers and Acquisitions 2010, "Taxation of the Cross-
Border Mergers & Acquisitions".
[23] Law 2166/1993.
[24] Law 2190/1920, "On Companies Limited by Shares (Societes
Anonymes), as amended by Law 3604/2007.
[25] Legislative Decree 1297/1972.
[26] Lev, B., 2001, "Intangibles: Management, Measuring and Recording",
Washington, DC.: Brookings Institution Press. P5.
[27] Lloyd, A., 2007, "Accounting for intangible assets", The university of
Auckland, Business Review,
[28] Ma, R., and Hopkins, R., 1988, "Goodwill - an example of puzzle
solving in accounting", Abacus, Vol. 24, No. 1, pp. 78-85.
[29] Nethercott, L., and Hanlon, D., 2002, "When is goodwill not goodwill:
the accounting and taxation implications", Australian Accounting
Review, Vol. 12, No. 1, pp. 55-63.
[30] Ntzanatos, D., 2008a, "International Accounting Standards and their
differences in relation to Greek accounting standards", Kastaniotis
Publications.
[31] Presidential Decree 1123/1980, "The Greek General Chart of Accounts",
Athens; 1980.
[32] Price water House Coopers, IAS 36, Supplement 2007, "Impairment of
Assets".
[33] Regulation (EC) No 1606/2002, of the European Parliament and of the
Council of 19 July 2002, on the application of international accounting
standards, Official Journal L 243 , 11/09/2002 P. 0001 - 0004.
[34] Sakellis, E., 2009, "The Pandektis of Accountant", 3rd Edition, Volume
B, Vrekous Publications.
[35] Seetharaman, A., Balachandran, M., and Saravanan, A. S., 2000,
"Accounting Treatment of Goodwill: yesterday, today and tomorrow,
Problems and Prospects in the International Perspective", Journal of the
Intellectual Capital, Vol.5, No.1, pp. 131-152.
[36] Skalidis, E., 2007, "Law on Commercial Enterprises", 6th edition, Jus,
(in Greek).
[37] Spacek, L., 1964, "The treatment of goodwill in the corporate balancesheet",
The Journal of Accountancy, pp. 35-40.
[38] Statement of Financial Accounting Standards, 2007, Available from:
http://www.fasb.org/st/.
[39] Street, D. L., and Larson, R. K., 2004, "Large accounting firms- survey
reveals emergence of Two Standard system in the European Union",
Advances in International Accounting, No. 17, pp. 1-29. Vol. 9, No. 1,
pp. 62-72.
[40] Wines, G., Dagwel, R., and Windsor, C., 2007, "Implication of the IFRS
goodwill accounting treatment", Managerial Auditing Journal, Vol. 22,
No. 9, pp. 862-880.
[1] Accounting Principle Board (APB), 1970a, "Business Combinations",
Opinion No.16, New York, NY: APB.
[2] Accounting Standard Board, 1997, Financial Reporting Statement - 10,
"Goodwill and Intangible Assets, UK.
[3] Alexandrakis, A., Pazarskis, M., and Karagiorgos, T., 2010, "Legal
Framework for M&A of Companies in Greece; An Accounting and
Finance Review and a Suggestion of its Reconstruction", ESDO, pp.
280-294, (in Greek).
[4] Alifantis, S. G., 2007, "The Accounting Treatment of Business-s
Goodwill", Honorary Volume for the professor emeritus Ignatiadis, A.,
pp. 3-54.
[5] Anthony, R. N., and Pearlman, L. K., 2003, "Essentials of Accounting",
8th edition, NJ: Prentice Hall.
[6] Australian Accounting Standards Board, AASB 1013, 1996,
"Accounting for Goodwill".
[7] Australian Accounting Standards Board, AASB 3, 2002, "Business
Combinations".
[8] Bellas A., Toudas, K., and Papadatos, C., 2007, "The consequences of
applying International Accounting Standards (IAS) to the financial
statements of Greek companies", 30th Annual Congress of European
Accounting Association, 25-27, April, Lisbon, Portugal.
[9] Bithell, R.A., 1882, "A Counting House Dictionary", George Routledge
& Sons, London.
[10] Bouden, I., and Chantiri-Chaudemanche, R., 2007, "Setting new rules
for Goodwill accounting: the British experience", Open Access
Publications from Universit├â┬®Paris-Dauphine, RePEc:ner:dauphin:urn:
hdl: 123456789/2618.
[11] Bryer, R.A., 1995, "A political economy of SSAP 22: accounting for
goodwill", British Accounting Review, Vol. 27, pp. 283-310.
[12] Caramanis, C., and Papadakis V., 2008, "Implementation of IFRS in
Greece", Athens University of Economics and Business, (in Greek).
[13] Deloitte Touch Tohmatsu, 2008, "Business Combinations and Changes
in Ownership Interests - A Guide to the Revised IFRS - 3 and IAS 27".
[14] Financial Accounting Standard Board (FASB). 1985. Elements of
Financial Statements. Concepts Statement No.6. Paragraphs 25 - 26.
[15] Graeme, W., Dagwell, R., and Windsor, C., 2007, "Implications of the
IFRS goodwill accounting treatment", Managerial Auditing Journal,
Vol. 22, No.9, pp. 862-880.
[16] Haller, A., 2002, "Financial accounting developments in the European
Union: Past events and future prospects", The European Accounting
Review, Vol. 11, No. 1, pp. 153-190.
[17] Hoggett, J.R., and Edwards, L., 2000, "Financial Accounting in
Australia", 4th ed., Wiley, Milton.
[18] International Financial Reporting Standards Foundation, IAS 36, 2007,
"Impairment of Assets".
[19] International Financial Reporting Standards, 2007, Available from:
http://ec. europa.eu/internal_market/accounting/ias_en.htm.
[20] Jerman, M., and Manzin, M., 2008, "Accounting Treatment of Goodwill
in IFRS and US GAAP", Organizacija. Journal of Management,
Informatics and Human Resources, Vol. 41, No.6, pp. 218-225.
[21] Johnson, L. T., and Kimberley, P. R., 1998, "Is Goodwill an Asset?",
Accounting Horizons, Vol. 12, No. 3, pp. 80-93.
[22] KPMG, Greece, Mergers and Acquisitions 2010, "Taxation of the Cross-
Border Mergers & Acquisitions".
[23] Law 2166/1993.
[24] Law 2190/1920, "On Companies Limited by Shares (Societes
Anonymes), as amended by Law 3604/2007.
[25] Legislative Decree 1297/1972.
[26] Lev, B., 2001, "Intangibles: Management, Measuring and Recording",
Washington, DC.: Brookings Institution Press. P5.
[27] Lloyd, A., 2007, "Accounting for intangible assets", The university of
Auckland, Business Review,
[28] Ma, R., and Hopkins, R., 1988, "Goodwill - an example of puzzle
solving in accounting", Abacus, Vol. 24, No. 1, pp. 78-85.
[29] Nethercott, L., and Hanlon, D., 2002, "When is goodwill not goodwill:
the accounting and taxation implications", Australian Accounting
Review, Vol. 12, No. 1, pp. 55-63.
[30] Ntzanatos, D., 2008a, "International Accounting Standards and their
differences in relation to Greek accounting standards", Kastaniotis
Publications.
[31] Presidential Decree 1123/1980, "The Greek General Chart of Accounts",
Athens; 1980.
[32] Price water House Coopers, IAS 36, Supplement 2007, "Impairment of
Assets".
[33] Regulation (EC) No 1606/2002, of the European Parliament and of the
Council of 19 July 2002, on the application of international accounting
standards, Official Journal L 243 , 11/09/2002 P. 0001 - 0004.
[34] Sakellis, E., 2009, "The Pandektis of Accountant", 3rd Edition, Volume
B, Vrekous Publications.
[35] Seetharaman, A., Balachandran, M., and Saravanan, A. S., 2000,
"Accounting Treatment of Goodwill: yesterday, today and tomorrow,
Problems and Prospects in the International Perspective", Journal of the
Intellectual Capital, Vol.5, No.1, pp. 131-152.
[36] Skalidis, E., 2007, "Law on Commercial Enterprises", 6th edition, Jus,
(in Greek).
[37] Spacek, L., 1964, "The treatment of goodwill in the corporate balancesheet",
The Journal of Accountancy, pp. 35-40.
[38] Statement of Financial Accounting Standards, 2007, Available from:
http://www.fasb.org/st/.
[39] Street, D. L., and Larson, R. K., 2004, "Large accounting firms- survey
reveals emergence of Two Standard system in the European Union",
Advances in International Accounting, No. 17, pp. 1-29. Vol. 9, No. 1,
pp. 62-72.
[40] Wines, G., Dagwel, R., and Windsor, C., 2007, "Implication of the IFRS
goodwill accounting treatment", Managerial Auditing Journal, Vol. 22,
No. 9, pp. 862-880.
@article{"International Journal of Business, Human and Social Sciences:58489", author = "Efthymios Gravas and Anastasios Alexandridis and Antonios Stavropoulos", title = "Goodwill in the Current Greek Accounting Environment", abstract = "The growing interest in the issue of intangible assets not only in the scientific community but also in some professional bodies internationally can be explained by several points of view. From the business perspective, enterprises are increasingly motivated by external and internal forces to measure and proactively manage their intangibles. With respect to the issue of intangibles, goodwill has been debated in many countries throughout the world. Despite the numerous efforts and the existence of international accounting standards there is not yet a common accepted accounting treatment for goodwill. This study attempts on the one hand to impress the accounting treatment of goodwill internationally, on the other hand analyses the major subjects in relation to the accounting treatment of goodwill in Greece, since 2005, year where the international accounting standards have been in use for the Greek listed companies. The results indicate that the accounting treatment for the goodwill in Greece, despite the effort for accounting harmonization in Europe from 2005, sustains many differences especially for the no listed companies.
", keywords = "Intangible Assets, Goodwill, International
Accounting Standards, Greek Accounting System and Law", volume = "5", number = "5", pages = "616-6", }
