Abstract

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Title:: Criticism and Reconstruction of Economic Paradigm in the Framework and System of Goodwill Accounting

Keywords:: goodwill accounting; economic critique; institutionalism; expected asset group

Abstract:: The issue of massive goodwill impairments has long been a persistent problem in capital markets, necessitating an urgent introspection and reshaping of goodwill accounting. Using the Marxist bookkeeping theory as the evaluation standard, we have found that goodwill accounting practice is characterized by the following two functional failures: “loss of process control” and “conceptual deviation”. The underlying economic theory paradigm, centered on liberalism, is no longer applicable and urgently needs updating. In contrast, many views from institutionalism better align with the essential requirements of “goodwill” existence. Based on this, the proposed “expected asset group” may become a breakthrough point for improving the new framework and system of goodwill accounting.