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Abstract

Title:                               Goodwill – differences and similarities between how IFRS and U.S. GAAP treats goodwill

Level:                              One year master, 15 credits

Author:                           Oscar Larsen and Thomas Karlsson

Supervisor:                     Leif Carlsson

Examiner:                      Cecilia Lindh

Year of publication:      2011

The main issue:              What are the differences and similarities of the treatment of goodwill between the U.S. GAAP and IFRS? What can the transition from U.S. GAAP to IFRS imply to companies regarding goodwill?

Aim:                                The aim with this thesis is to treat differences and similarities between U.S. GAAP and IFRS regarding how goodwill is generated and distributed in a business combination and also how the process of an impairment test of goodwill is carried through. The aim is further to treat possible effects that a transition may imply to companies regarding goodwill.

Method:                          In this study a qualitative research method has been used where the gathered information has been collected from interviews that has been analyzed and compared with the theoretical studies.

Conclusion:                    Differences described in theory doesn’t have to be confirmed with practices though it depends on how different companies in different industries interpret and apply these regulations

Keywords:                      Goodwill, IFRS, U.S. GAAP, impairment, business combination