HARMONIZATION OF GOODWILL REPORTING PRACTICE IN THE CONSOLIDATED FINANCIAL STATEMENTS OF ROMANIAN GROUPS

The purpose of this paper is to analyze the current state of consolidated reporting practiceharmonization concerning the extant methods for evaluating and reporting goodwill in the consolidatedfinancial statements of Romanian groups. In order to attain our purpose we selected financial and non-financial Romanian groups that were listed in the Bucharest Stock Exchange and we analyzed, first in aqualitative manner, for a period of five years starting 2007, the notes to their consolidated financial statementswith the design to establish exactly which of the methods stated in the International Financial ReportingStandards were being used for evaluating and reporting goodwill. The quantitative analysis, based on whichcertain conclusions about the current state of material harmonization concerning the practice of evaluatingand reporting goodwill could be extracted, was performed by using the Herfindahl Index. The results obtainedby calculating the Herfindahl Index indicate that throughout the entire period taken into account the value ofthe Index is constant and equal to 1, meaning that with respect to goodwill reporting practice, the groupsconsidered make use of the same method, the purchase goodwill approach. Based on the results, ourconclusion is that from the point of view of goodwill reporting practice, the groups analyzed are fullyharmonized.