Goodwill

From ACT Wiki
Jump to navigationJump to search
The printable version is no longer supported and may have rendering errors. Please update your browser bookmarks and please use the default browser print function instead.

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