Business Assessment and Goodwill in Ensuring the Competitiveness of Russian Organizations

Abstract

The competitiveness of an organization is an indicator of the effectiveness of its activity, which correlates with the assessment of the value of a business. In many business organizations in Russia, there is an underestimation of the business value due to the lack of internally created goodwill. Goodwill means a wide range of intangible assets, which reflection in the financial statements of an organization provides a competitive advantage in the future additional income. Therefore, it is necessary to find out what is meant by the internally created goodwill, as well as which accounting opportunities exist so they can be reflected in the financial statements of organizations. The objective of the paper is determined by the need for reflecting the value of internally generated goodwill in the organization’s balance sheet. As a result of the study, ithe authors propose to reflect the internally created goodwill as part of intangible assets as a law that has the potential to create economic benefits, with the subsequent transformation of this right into financial assets of the organization.