Banca de QUALIFICAÇÃO: ANNA JAMILLE COSTA DE SOUSA FERNANDES

Goodwill and its ability to meet expectations of future economic benefits: An empirical study in Brazilian Public Companies

Goodwill, performance, residual profits, accounting standards.

In the last two decades, goodwill and intangible assets have gained prominence in financial statements, driven by the increase in business combinations (M&A) and the significant growth of innovative companies (Pechlivanidis et al., 2022). In these transactions, acquiring companies recognize and measure, in their financial statements, the identifiable assets acquired, the liabilities assumed, and any non-controlling interest in the acquired company (CPC 15/R1, 2011). This process requires a detailed understanding of the elements that make up accounting equity and those that, although not recorded, generate profitability. However, the analysis of equity, based on the difference between assets and liabilities, does not accurately reflect the value of a business, with the discounted cash flow (DCF) method being a more reliable alternative for this measurement (Vasconcelos & Araújo Filho, 2016). In the context of M&A, company valuation is essential to determine its fair market value.