This paper studies goodwill in the area of accounting for business combination. First, the paper investigates the influences of IFRS on business combinations, specifically, the influences of goodwill. Then, the paper analyses the accounting standards of goodwill in different countries. Last, the paper undertakes an empirical test on the influences of IFRS on financial statements based upon corporate data. The main
finding of the paper is that the application of IFRS transforms goodwill into assets, which positively affects the performance of corporations.