Floating charge and Goodwill: Difference between pages

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imported>Doug Williamson
(Expand 3rd definition.)
 
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''Law''. 
1. ''Intangible assets - financial reporting.''


A charge over the general assets of a company, such as stock.  
Goodwill is an intangible asset representing the additional premium - in excess of the value of net assets - paid to acquire control of a business.  


The assets may change and the company can use the assets without the consent of the secured creditor until the charge 'crystallises' (becomes fixed).  
Also known as positive goodwill.


Crystallisation happens on the appointment of an administrative receiver, on the presentation of a winding-up petition or as otherwise provided for in the document creating the charge.
 
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 Sections 18, 19 and 27 of FRS 102.
 
 
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 ==
== See also ==
* [[Charge]]
* [[Acquisition accounting]]
* [[Debenture]]
* [[Book value]]
* [[Fixed charge]]
* [[Consolidated group accounts]]
* [[Floating charge debenture]]
* [[Financial reporting]]
* [[Security]]
* [[FRS 102]]
* [[Goodwill on consolidation]]
* [[Impairment]]
* [[Intangible assets]]
* [[Market value]]
* [[Negative goodwill]]
* [[Net assets]]
* [[Reputational risk]]
* [[Research & development]]
 
[[Category:Accounting,_tax_and_regulation]]
[[Category:Corporate_finance]]

Revision as of 05:15, 17 January 2022

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.

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 Sections 18, 19 and 27 of FRS 102.


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

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