Goodwill: Difference between revisions

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imported>Doug Williamson
(Expand 3rd definition.)
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]]
* [[Market value]]
* [[Market value]]
* [[Negative goodwill]]
* [[Negative goodwill]]
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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