Goodwill

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