A Baudrillarian View of Accounting Goodwill

Review of Business & Finance Studies, v. 4 (1) p. 95-105, 2013

12 Pages Posted: 28 Jan 2013

See all articles by Syaiful Anwar

Syaiful Anwar

Universitas Pembangunan Nasional “Veteran” Jawa Timur

Diah Hari Suryaningrum

Universitas Pembangunan Nasional Veteran Jawa Timur

Date Written: 2013

Abstract

This paper emanates from the understanding of hyperreality – reality, and on the other hand based on the Baudrillarian postmodernist perspective. Thus, we aim to understand hyperreality and reality in accounting from the perspective of Baudrillarian pospodernism. A thesis by Macintosh indicated that today’s financial markets operate detached from reality in hyperreality, and there does not exist anything stable to support the financial economy in the “order of simulacrum.” Consequently, vital accounting information no longer refers to real references, which mean that we live in a world of free-floating signs. In the simulation era of today’s world, accounting, just like all other areas of knowledge, faces a crisis of representation. Goodwill is a hidden value that accounting standards define as the value of future economic benefit (internal goodwill) and the difference between fair value and book value of the firm (business combination). This paper concludes that accounting goodwill represents the order of simulacrum (era of simulacra). These orders of accounting for goodwill are as follows: first, era of proprietary; second, era of political economy; third, era of globalization; and finally, the virtual era. It is also suggested that understanding goodwill is important to determine whether information of goodwill has value relevance for decision-making.

Keywords: Baudrillarian Postmodernism, Hyperreality, Era of Simulacra, Accounting Goodwill

JEL Classification: M41

Suggested Citation

Anwar, Syaiful and Suryaningrum, Diah Hari, A Baudrillarian View of Accounting Goodwill (2013). Review of Business & Finance Studies, v. 4 (1) p. 95-105, 2013, Available at SSRN: https://ssrn.com/abstract=2155203

Syaiful Anwar (Contact Author)

Universitas Pembangunan Nasional “Veteran” Jawa Timur ( email )

55283
Indonesia

Diah Hari Suryaningrum

Universitas Pembangunan Nasional Veteran Jawa Timur ( email )

Jl. Raya Rungkut Madya
Rungkuy
Surabaya, Jawa Timur 60293
Indonesia

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
185
Abstract Views
1,625
Rank
332,159
PlumX Metrics