M. Kravchenko, O. Tsygankova. Necessity of goodwill estimation, calculation methods and depreciation.

Abstract

This article presents the main opinions of specialists from different countries on the need to assess business reputation, namely goodwill in enterprises. Based on the generalization of the foreign experience of the evaluation, several methods were identified that are most often used in the estimation of goodwill, namely: the method of market capitalization; method of royalty; method of comparative multipliers; cash flow capitalization method; method of discounting cash flows. Allocated positive and negative sides of each of the above methods. Also in the work are given methods of calculating goodwill classical, as well as those that are most often used in modern life. Namely, the proportional and full calculation method is selected, and the differences between these two methods are determined, it is proved that the full calculation method gives the most correct result. In addition to these methods, methods for calculating the cost of goodwill are recommended, which are recommended by Ukrainian experts in modern conditions, namely: the method of comparing sales, the method of cost (property), income method. In the final part of the article, the signs and reasons for the impairment of goodwill are presented. The main conclusions are drawn that it is rather difficult to choose the best method for estimating the cost of goodwill, since it depends on the purposes of estimating goodwill and the process under which this goodwill is valued. Therefore, there is no one universal formula for calculating goodwill.