Reasons and Prerequisites of Goodwill Devaluation in the Ukrainian Banking Sector

The authors conduct studies of economic prerequisites and factors, which resulted in writing-off significant amounts of goodwill value in Ukrainian banking institutions, which are structural parts of international financial institutions. In the result of analysis of main prerequisites the article identifies external and internal reasons of acknowledgement of devaluation of goodwill in the domestic banking sector. In accordance with the results of the study, the article identifies that acknowledgement of devaluation of goodwill testifies to a negative mood of foreign investors with respect to prospects of business development in the domestic banking market. The article justifies expediency of, separate from goodwill, identification of intangible assets, subject to acknowledgement in the result of unification of banks, in particular the client base of a bank, as an intangible asset with a final date of useful use. It proves that acknowledgement of this asset in the result of unification would allow avoiding significant amounts of write-off of goodwill value under unfavourable economic conditions. The prospect of further studies in this direction is justification of an optimal method of identification of the amount of goodwill devaluation, which would allow avoiding manipulations with financial reporting and would improve quality of presented information about the real financial state of banking institutions