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The business reputation of an organization as a factor in its sustainable development and the quality of anti-crisis management

In the field of management and business relations, the term "business reputation" is quite often used. We will try to consider its essence and significance in this publication.

The very word "reputation" of French, and even earlier - of Latin origin and in literally with "reputation" (fr.) and "reputatio" (lat.) means "thinking", "reflection". Vocabulary foreign words the term "reputation" means the generalized opinion of others about the advantages or disadvantages of someone or something, that is public opinion about something or someone. According to scientists, reputation today is the least studied category both in the legal sense and in terms of philosophy. Reputation is a synonym for another term of French origin - "renome", which in translation from "renommee" means "fame", "reputation", "popularity". But in the sphere of economic relations, the term “reputation” is more common, and not just as such, but precisely “business reputation”.

The concept and essence of business reputation

In domestic regulatory legal acts, the phrase “business reputation” itself is found. At the same time, the legislation does not contain a definition of the term “business reputation”, since it is “a moral and ethical category and at the same time a personal non-property right, to which the law attaches the importance of an independent object of judicial protection” (paragraph 4 of Resolution No. 1 of the Plenum Supreme Court of Ukraine dated February 27, 2009 “On judicial practice on cases of protection of honor and dignity individual, as well as the business reputation of an individual and legal entity ", hereinafter - Resolution of the Armed Forces of Ukraine No. 1).

The only exception is the banking sector, for which there is a legislative definition of goodwill. So, in accordance with Art. 2 of the Law of Ukraine "On Banks and Banking" business reputation is "a set of confirmed information about a person, which makes it possible to draw a conclusion about the professional and managerial abilities of such a person, his decency and compliance of his activities with the requirements of the law." This definition can only be applied to legal relations regulated by this law, that is, to legal relations in the field of banking, although the definition is quite universal and, in principle, characterizes the business reputation of an entity in any other area.

It should be noted that business reputation as one of the characteristics of the subject is inherent in both individuals and legal entities. It is widely believed that the business reputation of an individual can only be discussed when such a person is an entrepreneur. And the Supreme Court in Resolution No. 1 in paragraph 4 noted that a business reputation may be with an individual who does not carry out entrepreneurial activities. The Supreme Court has identified two categories of entities with a business reputation:

a) an individual;
b) entity, including business associations; physical entrepreneurs; lawyers; notaries and others.

Under the business reputation of an individual, the Supreme Court understands the public assessment acquired by a person of its business and professional qualities in the performance of their labor, official, public or other duties. Under the business reputation of a legal entity, an individual entrepreneur, a lawyer, a notary and other persons, the highest court understands the assessment of their entrepreneurial, social, professional or other activities carried out by such a person as a participant public relations. In the context of the topic of this article, we will be interested in the second category of persons listed above, that is, to analyze the business reputation of business entities.

The concept of "goodwill" is almost always walks beside with such moral and ethical concepts as "honor" and "dignity". There is especially much in common between business reputation and honor. And there are significant differences between them. First, honor defines a person as a person and a citizen without indicating a specific type of activity or profession. Business reputation directly depends on how a person performs his official or professional duties. Secondly, honor and dignity are inherent only to an individual, and business reputation is characteristic of both individuals and legal entities. This can be seen even from the very title of Resolution No. 1 of the Supreme Court of Ukraine "On judicial practice in cases of protecting the honor and dignity of an individual, as well as the business reputation of an individual and a legal entity." Thirdly, a person acquires honor and dignity automatically, only by virtue of the fact that he is a person who, from birth to death, has his own dignity and honor. Business reputation does not automatically arise, it is formed, and it is formed not instantly, but over a certain period of time in a particular field of activity and in a certain way identifies a person as a subject of business relations. By the way, the epithet "business" in relation to reputation is used precisely because reputation is won by deed (deed).

Business reputation enterprise is inextricably linked with such a concept as "commercial (company) name". Commercial (company) is the name under which the company acts in business turnover and which individualizes it among other participants in economic relations. Under this name, the entrepreneur makes transactions and carries out other legal actions, bears legal responsibility, implements his plans and sells his products. A commercial name that has gained popularity among consumers and inspires confidence among business partners brings the business entity not only significant dividends, but also due respect in society and recognition of its merits. Therefore, we can say that one of the integral components of the business reputation of a business entity is its commercial (company) name.

Business reputation as an intangible asset

As follows from the definition and characteristics of the business reputation of a business entity, its essence is the prestige of a company (commercial) name, trademarks and other intangible assets appropriate to the entity among consumers of goods and services of such an entity. As noted in paragraph 5 of the Information Letter of the Supreme Economic Court of Ukraine dated March 28, 2007 No. 01-8 / 184 “On some issues of the practice of application of information legislation by economic courts”, the monetary equivalent of goodwill can be expressed in the form of goodwill. The explanatory dictionary defines goodwill as the conditional value of a firm's business relations, its prestige.

According to paragraph 14.1.40 of the Tax Code, “goodwill is an intangible asset, the value of which is determined as the difference between the market value of assets and their book value, as an integral property complex resulting from the use of the best managerial qualities, a dominant position in the market of goods (works, services), new technologies. The cost of goodwill is not subject to amortization and is not taken into account in determining the taxpayer's gross expenses. Goodwill as an intangible asset is subject to accounting in accordance with the Regulation (standard) accounting 19 "Combination of enterprises", approved by order of the Ministry of Finance of Ukraine dated July 7, 1999 No. 163.

It should be noted that the court does not insist on the mandatory and exclusive use of goodwill as the monetary equivalent of goodwill; this might be one option. At the same time, it is important that if a business entity, when resolving a dispute in court, declares goodwill as the monetary equivalent of its business reputation, then the court will not have the right to object to this. But if an enterprise does not keep accounting records of goodwill as an intangible asset, then such an entity is not deprived of the right to prove the amount of the monetary equivalent of its business reputation with other evidence. Determination of the monetary equivalent of business reputation is necessary, first of all, so that in the event of illegal actions by other subjects, it would be possible to determine how much this business reputation was humiliated. In cases of difficulties or disputes in court related to the determination of the monetary equivalent of the subject's business reputation, the economic court may appoint an appropriate forensic examination.

A positive business reputation not only increases the normal price of the enterprise, but, accordingly, goodwill, and as a valuable intangible asset can serve as a contribution to a certain joint activity or even be a structural part of the subject of a business contract. So, in accordance with Art. 1133 of the Civil Code of Ukraine when organizing joint activities with the pooling of contributions (simple partnership) “the contribution of a participant is considered to be everything that he contributes to a joint activity (common property), in particular cash, other property, professional and other knowledge, skills and abilities, as well as business reputation and business connections.

Depending on the type of joint activity that the participants plan to carry out, the goodwill (ie good name in business) of one participant may be a more significant contribution than the funds of another participant.
As noted above, goodwill can also be the subject of a business contract. Here we should mention a commercial concession agreement or, as it is also called, a franchise agreement. According to paragraph 1 of Art. 1116 of the Civil Code of Ukraine “the subject of a commercial concession agreement is the right to use objects of law intellectual property(trademarks, industrial designs, inventions, works, trade secrets, etc.), commercial experience and goodwill.” As you can see, the business reputation of an enterprise is not only its prestige and position in business circles, but also the practical value that can be effectively used in business operations.

Considering great importance business reputation of any entity in economic relations, it is protected. How exactly - we will find out further.

Inviolability of business reputation

Article 201 of the Civil Code of Ukraine defines business reputation as a personal non-property benefit, which is protected by civil law along with life, health, name, honor, dignity, authorship, etc.

The inviolability of business reputation is fixed at the legislative level. So according to paragraph 1 of Art. 299 of the Civil Code of Ukraine "an individual has the right to the inviolability of his business reputation." According to Part 1 of Art. 91 of the Civil Code of Ukraine, a legal entity is able to have the same civil rights and duties, like a natural person, except those that by their nature can only belong to a person. As emphasized in the Review Letter of the Supreme Economic Court of Ukraine dated December 12, 2008 No. 01-8/676 “On Some Issues of Dispute Resolution Practice Related to the Application of Information Legislation by Economic Courts”, the right to inviolability of one’s business reputation refers to the personal non-property rights of an individual persons providing the social existence of an individual. This right, by its nature, may not only belong to an individual. Therefore, Art. 94 of the Civil Code of Ukraine it is determined that "a legal entity has the right to the inviolability of its business reputation" along with the right to information, secrecy of correspondence and other personal non-property rights that may belong to it.

Regarding the essence of the inviolability of business reputation, then, in accordance with the meaning of the word "inviolability" according to explanatory dictionary, it is "a guarantee against any encroachment by anyone." That is, "inviolable - means one that is protected by law from encroachment by someone." Applying this term to business reputation, it can be stated that by enshrining the principle of inviolability of business reputation in the law, the state thereby gives the owner of this business reputation guarantees of judicial protection against any kind of encroachment by any persons.
As noted above, business reputation is inviolable by law, but the state protects not the inviolable business reputation itself, but the right to it. From the point of view of protection against illegal actions, this is natural and more important. Why? Because a person can go to court when someone's actions or omissions violate his right to something.

In the light of our topic, the right to inviolability of the business reputation of the plaintiff should be violated. In other words, the person will defend in court his violated right to the good, and not the good itself. And this is how the norms of the Civil Code of Ukraine, which were analyzed above, are formulated, where it is indicated that both individuals and legal entities have the right to inviolability of business reputation. And if this right is violated, it is subject to judicial protection.

Protection against humiliation of business reputation

Violation of the inviolability of business reputation is expressed in its humiliation. According to paragraph 6 of the Information Letter of the Supreme Economic Court of Ukraine dated March 28, 2007 No. 01-8 / 184 “On some issues of the practice of application of information legislation by economic courts”, humiliation of the business reputation of a business entity (entrepreneur) “is the dissemination in any form of untruthful, inaccurate or incomplete information that discredits the method of conducting or the results of its economic (entrepreneurial) activities, in connection with which the value of its intangible assets decreases.

These actions cause property and moral damage to economic entities, and therefore this damage is subject to compensation in accordance with the relevant claims of the injured persons. This is done through the courts. In accordance with paragraph 2 of Art. 299 of the Civil Code of Ukraine, an individual may apply to the court with a claim to protect his business reputation. And as noted in paragraph 9 of the above Information Letter of the Supreme Economic Court of Ukraine dated March 28, 2007, on the content of the provisions of Art. 91 of the Civil Code of Ukraine, the right to refute false information applies not only to individuals, but also to legal entities in cases provided for by law, in particular, as a way of judicial protection against the dissemination of information that harms the business reputation of an economic entity (entrepreneur).

Cases on the refutation of information that humiliates the business reputation of an enterprise (both individuals and legal entities) are under the jurisdiction of economic courts. This is indicated in the Review Letter of the Supreme Economic Court of Ukraine dated November 12, 2008 No. 01-8 / 676 “On Some Issues of the Practice of Dispute Resolution Related to the Application of Information Legislation by Economic Courts” (based on materials of cases considered in cassation by the Supreme Economic Court court of Ukraine). But the Resolution of the Supreme Court of Ukraine No. 1 specifies this issue of jurisdiction. Thus, its paragraph 7 states that the economic courts consider cases “on the protection of business reputation between legal entities and other business entities in the field of management and other entrepreneurial activities”. All other cases on the protection of business reputation are considered in courts in civil proceedings.
That is, if a legal entity or an individual entrepreneur applies for protection and we are talking about his entrepreneurial relations, then such cases are within the jurisdiction of economic courts. And if the business reputation of an individual needs protection, for example, in connection with the fulfillment of his job duties or the exercise of public duties, then this category of cases is within the jurisdiction of the general courts.

But in any case, cases on the protection of business reputation cannot be considered according to the rules of administrative proceedings, since such cases do not have a public legal nature, even if the subject of power is a party to it.

Respondents in cases of protection of business reputation are the individual or legal entity that disseminated false information, as well as the author of this information. According to paragraph 15 of the Resolution of the Supreme Court of Ukraine No. 1, the dissemination of information should be understood as:

Distribution on the Internet or using other means of telecommunications;

Statement in characteristics, statements, letters addressed to other persons;

Message in public speaking, in electronic networks, as well as in another form to at least one person.

The dissemination of information also posting (demonstration) in in public places posters, slogans, other works, as well as the distribution of postcards among people, which, in their content or form, humiliate the business reputation of a person.

According to the decision of the Constitutional Court of Ukraine dated April 10, 2003 No. 8-rp / 2003, appeals to law enforcement, containing certain information about non-compliance with laws by officials or officials, cannot be considered the dissemination of information discrediting business reputation, since this information was reported not for the purpose of bringing them to the public or individual citizens, but for the purpose of their verification by authorities. At the same time, it is already noted in the Resolution of the Supreme Court of Ukraine No. 1 “the presence of knowingly false information in such an appeal, as well as in the event that it was established that there were no grounds for a person to apply to these bodies and was caused not by the intention to fulfill his civic duty or protect their rights, freedoms or legitimate interests, entails liability provided for by the legislation of Ukraine.

This clarification is very important and relevant for business entities. Considering that our business relations are far from ideal, certain individuals often take steps such as writing various kinds of statements and letters to law enforcement agencies so that this entails checking their competitors or counterparties. Such steps, as a rule, have a negative impact on the business reputation of an economic entity. And based on these explanations judiciary, he will be able to defend his right to inviolability of goodwill in court.

These requirements are considered in accordance with the general grounds for liability for causing harm.

The client, turning to the services of certain organizations, finding a job or taking the position of an applicant for workplace, you need to remember about your own business reputation. Business reputation of the client- this is an intangible benefit that correlates with an individual, a client, which can promise him the receipt of already tangible assets. Therefore, in order to conduct a successful labor activity, as well as to receive a number of services, the client must have a high business reputation.

The concept of the client's business reputation and its difference from personal reputation

A client can be a carrier of both business and personal, personal reputation. At the same time, in some cases, personal reputation can play a more significant role. But when conducting business relations, as a rule, mainly the coefficient of business reputation is taken into account. The business reputation of a client implies a set of assessments, expectations, ideas and opinions about a person that have been formed in society. The positiveness of these assessments depends on many factors that are closely related to the business and labor activity. It is customary to refer to such factors, first of all, his business qualities and capabilities, business competence, experience and work experience, labor efficiency, productivity. Also, when building a business reputation, indicators of business honesty, the absence of abuse of official opportunities, stability in work, etc. are important. Business reputation of the client formed from the moment of the beginning of his labor activity.

At the same time, the business reputation of the client may have negative coefficient in the event that a person was noticed in unscrupulous business affairs, fraud, lack of responsibility, diligence, stability in work, etc. In this case, distrust may arise about the client as a business partner or performer.

However, it is important to distinguish, especially for the business world, between the categories of business reputation and personal reputation. Personal reputation correlates more with moral and ethical ideas, principles, positions and moral laws that have been formed among the public masses. The personal reputation of the client, with positive assessments, can characterize him as an honest, virtuous, responsible, law-abiding and highly moral person. The business reputation of the client, as opposed to personal, is based more on objective characteristics.

However, in a number of cases, when there is a client's appeal to certain organizations, for example, banks for obtaining a loan or installments, as well as for employment, business reputation can be supported by personal in a positive way, which is formed by acceptable and approved internal qualities of a person.

In what cases is the business reputation of the client important?

The client is the actual person who applies for certain services, while the reputation parameter may affect the refusal or agreement to provide them. The business reputation of the client is especially important when contacting banking services. First of all, this concerns the issuance of loans. At the same time, bank employees evaluate several parameters at once, correlated with reputation, which will indicate the possibility of subsequent loan repayments. These parameters include:

Clear credit history of the client;
The absence of outstanding loans, debts in other banks, its solvency, the availability of a source of income that could repay the loan.
A good business reputation of the client can also protect the client from suspicions of financial fraud, clashes with the law, which in general will lead to the issuance of a loan by the bank.

This is just one particular example, when the client's business reputation is the basis for increasing his tangible assets. However, it is also not uncommon for a client to apply for installments to firms and companies if he wants to make a significant purchase of goods or products at a cost. In general, the business reputation of individuals determines the possibility of promising employment, obtaining a prestigious position, career, trust from the authorities, which ultimately leads to an increase in the status of a person and his financial well-being.

How to improve the business reputation of a client?

The business reputation of a client is not a stable category, so it can either increase its coefficient or decrease it. There are methods that allow you to improve the business reputation of clients, however, its increase will be a planned and rather lengthy process, primarily related to work and its financial solvency.

The client must be on in good standing at the organization in which he performs labor activity. That is, a person should not be implicated in financial dishonesty, fraud, laziness, irresponsibility and unfulfillment. Such a good name in your own company will serve as a guarantee of stable solvency, for example, when taking a loan, which will be taken into account in banks.

The client's business reputation is also enhanced by expanding his business ties that would facilitate the receipt of a service or product on certain loyal or special conditions that would make it possible to receive some exclusive services that are not available to persons without guarantors.

Business reputation of a citizen

Business reputation of a citizen is a kind of indicator of trust and respect for a particular business entity on the part of partners and customers, which is regulated both by its actions and internal and external factors that are only partially or completely uncontrollable. Modern psychologists sales, as well as leaders of companies involved in reputation, focus on the fact that this new branch of science and society is developing so rapidly that new methods of prompt response to fluctuations in the reputation factor are available only to leading companies, of which there are few.

What determines the business reputation of a citizen?

Speaking about the reputation and image of a particular person in a particular area, it is important to note all those internal and external variables that in one way or another affect reputation. Analysts use precisely variable factors in order to create a certain pattern of behavior target audience and check how specifically the attitude of the audience to the object or subject will change depending on the approach.

It is worth initially noting and highlighting the fact that the business reputation of a citizen is a concept so complex and ambiguous that many confuse the theory of reputation of the last century with modern technologies definition, analysis, protection and improvement of reputation. For example, according to many sites on the Internet, business reputation is a factor that depends only on professional qualifications. The same opinion is shared by many people who are not familiar with the concept of relationship psychology and industrial group psychology. In order to confirm their wrongness, you can simply strain your memory, and 99% of readers will come up with at least 1-2 people who do quality work in a certain area, but still do not drive foreign cars and are not particularly recognizable in the world as specialists. The thing is that, as in any area in which people are involved, attitude and reputation are divided into objective factors that are tangible from the point of view of the specialist himself, and subjective factors, which are often dictated by the subconscious of groups and are in no way tied to real business. human activity.

The objective factors that affect such indicators as the business reputation of a citizen are, indeed, his industrial qualifications, even expressed in terms of how much money he is able to make for superiors and partners per unit of time. This takes into account costs, expenses, as well as personal aspects. The most “profitable” specialist for the company will always have a good reputation, in contrast to the less eccentric, but average workaholic in terms of productivity. In addition to this already underway the subjective factor of a specialist's education, his work experience, as well as real references to the results of his work and public opinion.

The business reputation of a citizen, determined by the last indicator, is, as the reviews of the people themselves, analyzing their reputation, an extremely difficult area for independent conclusions. Marketing and image-making gurus even focus on the fact that it’s not worth researching and defending your reputation in “home” conditions, it’s important to turn to specialists in time, since the obvious arguments made by a specialist in a field far from PR are insignificant and not very real , which can lead to a misunderstanding of at least oneself, and as a maximum - the reasons for one's attitude towards oneself, be it positive or vice versa.

The business reputation of a citizen is one of the freedoms that is protected by the laws of many countries, even the CIS countries. However, the CIS is clearly distinguished by the “green” stage of development even of legislation, which directly determines business reputation and the degree of its change. Such aspects are justified by the fact that in the CIS it is not so much important as with the manufacturer good reviews, much more important is his ability to defend his opinion and prove the quality of products, backing it up with a low and affordable price.

Mistake of many business people is an approach to the concept of business reputation of a citizen, as something that is easy to control and can be changed independently, without resorting to psychologists and analysts. As a rule, such companies go below zero very quickly, losing their assets due to surges in attitudes towards the company.

Values are widely shared. So, in the dashing nineties in Russia, business reputation was hardly so popular that it needed patronage from the state. So it turned out that the first part of the Civil Code does not fully reflect the process of protecting such a relatively new concept for us as the business reputation of an organization. Let's dwell on it in more detail.

The business reputation of the company, as already mentioned, refers to and represents the assessment that consumers, suppliers and other counterparties give to this legal entity. This category is on a par with the brand name, know-how.

It should be noted that business reputation can be both positive and negative. In the first case, counterparties are confident in the company, its financial results and stability, cooperation is, in addition to contractual, also of a trusting nature. On the negative side, in such a course of affairs, neither suppliers, nor buyers, nor other individuals and legal entities that make up the environment, do not trust the company due to its unstable position in the market.

This means that the business reputation of the organization has a qualitative assessment. However, it is worth mentioning the quantitative assessment, which in foreign practice is called Goodwill. The bottom line is that the cost of goodwill is understood as the difference between which is offered to the owner of the asset (in this case, the enterprise is acquired as a property complex) and the value of all assets and liabilities according to the balance sheet as of the date of its purchase.

Let's get back to the qualitative side, which is a bit more interesting. It is obvious that a positive opinion about the company attracts customers, a negative one - vice versa. But often in the market, legal entities may face such injustice as the dissemination of knowingly false information about them, discrediting their “good name”. Of course, in such a situation, it is necessary to defend one's position or at least try to partially restore the trust of counterparties. For this, judicial protection is applied.

If, for example, in the means mass media If data discrediting the reputation of the company has spread, then in fact you can go to court and demand a refutation in the same media.

Since the legal entity conducts economic activity, then business reputation can directly affect income. If, as a result of the dissemination of false information, the company has suffered losses, then it is possible to apply to the court with a claim to compensate for the existing losses. However, in this case, there is a possibility of certain problems.

For example, if any information has grown on the Internet, then even after a refutation, it will “wander” through its expanses for a long time. Such injustice is eradicated in Civil Code by applying the concept of "moral damage". And here the most interesting begins.

A legal entity is an artificially created entity, so there can be no question of it. However, since 2003 there has been an increase in cases of satisfaction of such claims, so the court may well make concessions.

Business reputation, in addition to the Civil Code, can also be protected by the Criminal Code of the Russian Federation in cases where, for example, there has been illegal use another face of the company's trademark.

Summing up, it should be said that the legislation in the field of this issue requires certain adjustments, since the development of market relations is impossible without the comprehensive protection of the company's intangible benefits by the state. The business reputation of the company in the face of increasing competition has great value, and every manufacturer interested in his business must be sure that he will not be left without protection in the event of an infringement on his good name.

Historically, goodwill arose in the commercial practice of England in the first half of the 15th century, but legislation for more than 200 years prohibited such transactions, considering them to limit competition.

in Russia until the 18th century. the concept of "Business reputation" corresponded to the image " good man' and the narrower 'honest merchant'. And the latter, as you know, is fully associated with such a concept as the "merchant's word", which in the general sense means the ability to pay bills, to comply with the terms of transactions.

In world practice, it is customary to determine the value of an organization’s business reputation by the concept of “goodwill” (from the English “good will” - good will). Therefore, the term goodwill meant that a transaction with an overpayment occurs of the good will of the parties, without coercion.

The value of goodwill can be both positive, due to the fact that the value of the enterprise exceeds the value of its assets and liabilities, and negative (in this case it is sometimes called badwill), when the market value of the enterprise is below the book value. net assets.

Despite the long period of use of goodwill in commercial practice, many unresolved issues remain. The companies' balance sheets reflect huge amounts of purchased goodwill, which veil and sometimes distort their real value. financial condition, but do not reflect the actual amount of intangible values owned by them.

Ambiguous and conflicting interpretations of goodwill have Negative influence to her decision. Based on this, the purpose of this term paper is the systematization of approaches to the definition of goodwill and substantiation of the reasons for its origin from the point of view of modern needs of company value management.

The Civil Code of the Russian Federation (Article 150) defines business reputation as a non-property right that belongs to a legal entity from the moment of its formation and constitutes an integral part of its legal capacity.

From the point of view of accounting, business reputation is the difference between its purchase price (as an acquired property complex as a whole) and the book value of its assets (Clause 27 PBU 14/2007 "Accounting for intangible assets"). When a company is acquired by the acquirer, a payment is made in anticipation of future economic benefits from assets not recognized in the financial statements, but for which the acquirer is willing to pay. This value is put on the balance sheet of the enterprise as an intangible asset at the time of purchase of the enterprise. Thus, the reason for the "overpayment" at the time of the purchase of the enterprise is the presence of hidden assets in the organization. Such assets may include: highly qualified management, accumulated business experience, an established sales system, good credit history and reputation in the market, advantageous economic and geographical position, other assets that cannot be alienated from the organization and transferred to other persons.

Business reputation has a number of features that distinguish it from other intangible assets:

1. The inability to exist separately from the enterprise and be an independent object of the transaction, due to the fact that the business reputation does not belong to the organization on the basis of ownership.
2. The indisputable absence of a material-material form.
3. The conditionality of the value of goodwill, because it does not include the actual costs of acquiring, creating, legal protection
4. Possibility to write off, pay off the cost of business reputation in accounting without the risk of depriving the enterprise of this reputation.

Business reputation cannot be transferred, sold or donated, as business reputation is inherent in the entire company and is inseparable from it. It cannot be an independent object of the transaction, since it is not the property of the company, and is inalienable from it in the same way as reputation is inalienable from a person. This is the main difference between business reputation and other objects of intangible assets. Even if the enterprise is sold, the reputation of the company can be damaged, as the former management, leaving, takes with them their skills, business connections, experience, etc.

Goodwill is present only if there is excess profit, although from the point of view of accounting, negative goodwill is also possible. A positive business reputation means that the value of the enterprise exceeds its book value. Business reputation management becomes the most valuable strategic tool competition, since it gives the effect of acquiring a certain market power by the organization.

There is still no single interpretation of the concept of business reputation. But, despite this, domestic companies are doing their best to evaluate it.

Most often, goodwill is considered as a tool for reporting the difference between the sale price and the book value of assets, if this difference cannot be recognized as an independent amount of one or more inventory units of intangible assets. On the other hand, the author of one of the popular textbooks on financial management, V.V. Kovalev, believes that the economic meaning of goodwill lies in the valuation of the intangible value accumulated by the company at the time of analysis (trademark, patents held by the company, developed by it and not in the balance sheet). shown, the established team, etc.). That is, in his opinion, goodwill is "the difference between the market valuation of liabilities and the market valuation of assets."

Most precise definition this concept is given by I.A. Blank: “goodwill is one of the types of intangible assets, the value of which is determined as the difference between the market (selling) value of an enterprise as an integral property complex and its book value (the sum of net assets)”. He believes that such an increase in the value of the enterprise is associated with the possibility of obtaining more high level profit (compared to the average market level of investment efficiency) through the use of more effective system management, dominant positions in commodity market, application of new technologies, etc.”

Another definition is given by G. Desmond and R. Kelly in the book "A Guide to Business Valuation". Goodwill is defined as “the sum total of those elements of a business or personality that motivate customers to continue using the services of that business or that person that generate a profit for the company in excess of what is required to earn a reasonable return on all the other assets of the business, including all intangible assets that may be identified and separately evaluated.

Russian legislation adequately reflects modern look on the concept of "business reputation". It recognizes the presence of goodwill in legal entities, provides the possibility of its judicial protection, and also allows considering goodwill and business connections as a contribution to a simple partnership. In this case, it needs to be evaluated. This is especially true for a profitable, successfully operating company that has strong established business ties, a favorable location and highly qualified administrative staff.

An individual entrepreneur may also have a business reputation. However, when assessing the value of the business reputation of an individual, section VI PBU 14/2007 is not applicable. Therefore, the issue of the cost of business reputation individual entrepreneur on Russian legislation is subjective and the assessment is made at the personal discretion of individual citizens.

So, if one of the participants contributes his personal business reputation to the share capital of a general partnership, then its assessment is determined by the agreement of all partners and is fixed in a document confirming the contribution of a share to the total capital of the company. Based on the specified information, the accountant takes into account business reputation as part of intangible assets.

When it comes to the dissemination of information discrediting the business reputation of a citizen, the assessment of the moral damage caused is made by the court. In this case, the degree of guilt of the disseminator of defamatory information and other noteworthy circumstances should be taken into account.

The concept of business reputation in Russian business practice

Goodwill is a kind of “good name” of a person and is accounted for as part of its intangible assets along with copyrights, know-how and trademarks. Business reputation can be both positive and negative. A positive business reputation is associated with a positive attitude of contractors towards its owner, with confidence in him and confidence in the positive result of cooperation. A negative business reputation shows the instability of the position of its owner in economic turnover, distrust of him on the part of contractors .

Business reputation can be assessed both qualitatively and quantitatively. As an example of a quantitative indicator, we can name the value assessment of business reputation used in Russian economic practice when accounting for intangible assets: the value of business reputation is defined as the difference between the current market price offered to the seller (owner) of an asset when acquiring an enterprise as a property complex (as a whole or part of it), and the value of all assets and liabilities in the balance sheet at the date of its purchase (acquisition), the so-called. goodwill (a concept used in foreign business practice).

Goodwill

Goodwill arises because, on the acquisition of an investment, there may be a difference between the cost of the investment and the net fair value of the associate's assets and liabilities. This difference is called goodwill. Goodwill is equal to the purchase price of the company minus the fair market value of the net assets and liabilities. positive goodwill in consolidated reporting is not allocated as a separate line, and negative goodwill is immediately written off to profit and loss.

Goodwill calculation

Goodwill arising on the acquisition of a subsidiary is calculated as the excess of the fair value of the consideration transferred by the controlling shareholder over its share of the fair value of the net assets of the subsidiary.

Proportional calculation of goodwill

proportional method takes into account only goodwill attributable to the controlling shareholder. Simplified way this method of calculating goodwill can be expressed as the following formula:

Goodwill = Amount of Investment - Amount of Subsidiary's Net Assets * Percentage of Ownership.

Calculation of goodwill using the full method

The full method of calculating goodwill involves comparing the fair value of a subsidiary to all of its net assets, not just the controlling shareholder's portion of it.

In this case, the fair value of a subsidiary is equal to the amount of:

the fair value of the controlling shareholder's investment and
fair value of the non-controlling interest (NAM).

Simplified, this calculation method can be represented as the following formula:

Goodwill = (controlling shareholder's investment + ADV) - net assets of the subsidiary.

Unlike the proportional method, the full method reflects goodwill attributable to the subsidiary as a whole, that is, the goodwill of both the controlling shareholder and the non-controlling shareholder.