The Logic of Accounting for Goodwill from an Earnout Model Perspective: Focusing on Differences between Japanese Accounting Standards and IFRS

This paper examines the accounting logic underlying contingent consideration and related contingent goodwill in business combinations by focusing on payment options in earnout arrangements and comparing Japanese GAAP with IFRS. It shows that their differences stem from distinct interpretations of faithful representation and corresponding approaches to uncertainty, and it also identifies theoretical issues in both standards.

Chiba University of Commerce review

第63巻