Goodwill and In the money: Difference between pages

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1. ''Intangible assets - financial reporting.''
(ITM).  


Goodwill is an intangible asset representing the additional premium - in excess of the value of net assets - paid to acquire control of a business.  
1.  


Also known as positive goodwill.
An option is in the money for the holder when immediate exercise of the option would result in a gain for the option holder.




2. ''Financial reporting - consolidated accounts.''
2.  


The excess of the total value of the whole business, above the net value of its individual assets and liabilities.
A derivative such as a swap is in the money when, for example, the swap rate is favourable compared with the current market rate, so that the net present value of the derivative is positive.
 
 
Relevant accounting standards include Sections 18, 19 and 27 of FRS 102.
 
 
3. ''Intangible assets - reputational risk management.''
 
The positive reputation of a business.




== See also ==
== See also ==
* [[Acquisition accounting]]
* [[At the money]]
* [[Consolidated group accounts]]
* [[Out of the money]]
* [[Financial reporting]]
* [[FRS 102]]
* [[Goodwill on consolidation]]
* [[Impairment]]
* [[Intangible assets]]
* [[Negative goodwill]]
* [[Net assets]]
* [[Reputational risk]]
* [[Research & development]]
 
[[Category:Accounting,_tax_and_regulation]]
[[Category:Corporate_finance]]

Revision as of 08:29, 27 August 2013

(ITM).

1.

An option is in the money for the holder when immediate exercise of the option would result in a gain for the option holder.


2.

A derivative such as a swap is in the money when, for example, the swap rate is favourable compared with the current market rate, so that the net present value of the derivative is positive.


See also

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