Goodwill and Intangible Assets in Consolidated Financial Reporting under IFRS and US GAAP: Navigating Divergences Toward Global Accounting Harmony

The aim of this thesis is to investigates the challenges and prospects of harmonising goodwill and intangible asset accounting within consolidated financial statements under IFRS and US GAAP in a widely intangible driven market. The research compares the two frameworks across key areas: control definition, goodwill recognition methods (full vs partial), and the treatment of internally generated intangible assets, particularly R&D. To assess the value-relevance of these differences, an empirical analysis is conducted on a balanced sample of 40 firms (20 IFRS, 20 US GAAP) over the period 2015 - 2024. Market capitalisation is regressed on several intangible-related indicators, including goodwill intensity, intangible intensity, and R&D ratios. The findings highlight how divergent recognition approaches influence firm valuation and comparability. The thesis concludes by outlining potential pathways toward a more globally consistent framework for consolidation, suggesting that selective convergence of IFRS and US GAAP could enhance transparency, reliability, and investor decision-usefulness. Finally, to shape what could be the future role for Accounting.