The Definition of Goodwill - a Chronological Overview

The purpose of this paper is to offer a full perspective on the evolution in time of goodwill definitions. This paper is part of the research conducted in the doctoral dissertation and we consider it is very important to have a full understanding of the concept studied in order to develop on this subject. We use a chronological analysis and review definitions from the late 1800s until today. The definitions are given by prominent scholars of the time, published in highly ranked journals and books or offered by international accounting boards. We approach the definition from an accounting and a legal perspective. Our findings are that, in time, the definitions offered either improve on an old definition or are completely original. Some elements used to describe goodwill remain the same throughout the whole period we studied. The conclusion of our study is that this type of in-time analysis is beneficial to the researcher in the way that it offers a complete picture of the concept and its history.