Goodwill: Difference between revisions
imported>Doug Williamson (Add link.) |
imported>Doug Williamson (Add IFRS and US GAAP accounting.) |
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1. ''Intangible assets - financial reporting.'' | 1. ''Intangible assets - financial reporting.'' | ||
Goodwill is an intangible asset representing the additional premium - in excess of the value of net assets - paid to acquire control of a business. | Goodwill is an intangible asset representing the additional premium - in excess of the book value of net assets - paid to acquire control of a business. | ||
Also known as positive goodwill. | Also known as positive goodwill. | ||
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The excess of the total book value of the whole business, above the net value of its individual assets and liabilities. | The excess of the total book value of the whole business, above the net value of its individual assets and liabilities. | ||
Relevant accounting standards include Sections 18, 19 and 27 of FRS 102. | Relevant accounting standards include IFRS 3 and IAS 38 under IFRS, ASC 350 under US GAAP, and Sections 18, 19 and 27 of FRS 102 under UK GAAP. | ||
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== See also == | == See also == | ||
* [[Acquisition accounting]] | * [[Acquisition accounting]] | ||
* [[ASC 350]] | |||
* [[Book value]] | * [[Book value]] | ||
* [[Consolidated group accounts]] | * [[Consolidated group accounts]] | ||
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* [[FRS 102]] | * [[FRS 102]] | ||
* [[Goodwill on consolidation]] | * [[Goodwill on consolidation]] | ||
* [[IAS 38]] | |||
* [[IFRS 3]] | |||
* [[Impairment]] | * [[Impairment]] | ||
* [[Intangible assets]] | * [[Intangible assets]] | ||
* [[International Financial Reporting Standards]] (IFRS) | |||
* [[Know-how]] | * [[Know-how]] | ||
* [[Market value]] | * [[Market value]] | ||
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* [[Reputational risk]] | * [[Reputational risk]] | ||
* [[Research & development]] | * [[Research & development]] | ||
* [[UK GAAP]] | |||
* [[US GAAP]] | |||
[[Category:Accounting,_tax_and_regulation]] | [[Category:Accounting,_tax_and_regulation]] | ||
[[Category:Corporate_finance]] | [[Category:Corporate_finance]] | ||
Latest revision as of 20:57, 12 February 2023
1. Intangible assets - financial reporting.
Goodwill is an intangible asset representing the additional premium - in excess of the book value of net assets - paid to acquire control of a business.
Also known as positive goodwill.
2. Financial reporting - consolidated accounts.
The excess of the total book value of the whole business, above the net value of its individual assets and liabilities.
Relevant accounting standards include IFRS 3 and IAS 38 under IFRS, ASC 350 under US GAAP, and Sections 18, 19 and 27 of FRS 102 under UK GAAP.
3. Intangible assets - reputational risk management.
The positive reputation of a business.
It can sometimes be estimated as the difference between the market value of a business and its adjusted book value.
See also
- Acquisition accounting
- ASC 350
- Book value
- Consolidated group accounts
- Financial reporting
- FRS 102
- Goodwill on consolidation
- IAS 38
- IFRS 3
- Impairment
- Intangible assets
- International Financial Reporting Standards (IFRS)
- Know-how
- Market value
- Negative goodwill
- Net assets
- Reputational risk
- Research & development
- UK GAAP
- US GAAP
