GENESIS OF THE CONCEPT OF «GOODWILL»

Abstract

Goal. The problem of defining the essence of goodwill lies in its complex and multifaceted nature. Goodwill formation occurs constantly, but as a fully-fledged accounting object, disclosed in consolidated financial statements, it arises during business combinations. Various stakeholders have subjective perceptions of goodwill, complicating its definition, evaluation, and accounting. The relevance and purpose of the research lie in the necessity of formulating a comprehensive approach to understanding the essence of goodwill, considering its etymology, analysis of domestic and foreign contemporary and historical sources, existing approaches to interpretation, and highlighting key categories. Method. The research utilized methods of systemic analysis, synthesis, comparison, systematization, analogy, and generalization. Results. The global economy witnesses an increase in the value of intangible assets and goodwill. The change in the dominance of approaches to understanding the essence of goodwill, analysis, and systematization of existing sources allowed identifying that for the current stage of development of this concept, the recognition of its complexity and diversity is characteristic. This necessitates the identification of key components of goodwill, analyzing their role in business value management, brand value enhancement, and capital accumulation. The main focus is on using goodwill to measure consumer trust, shape the company's reputation, and assess its performance. The proposed comprehensive definition of goodwill as a special intangible asset that reflects the added value of the business, potential for future income generation, shaped by the interaction of components such as reputation, brand, recognition, image, corporate style, customer loyalty, corporate culture, technological advantages, customer base, trade secrets, know-how, research, development, innovation, patents, licenses, copyrights, government grants, partnerships, competencies, managerial qualities, social and environmental responsibility, collectively providing business with competitive advantages, investment attractiveness, and contributing to its successful operation. The proposed definition will most fully account for the key components of goodwill expression and generation, helping to comprehensively understand its essence and positively impact the market capitalization of the business. Practical significance. Correct understanding of goodwill is important for accurate assessment, completeness of disclosure in consolidated financial statements, and for effective management and justification of investor decisions.