Goodwill

1.

An intangible asset representing the additional premium paid to acquire control of a business.

Also known as positive goodwill.

2.

The excess of the total 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.

See also

• Acquisition accounting
• FRS 102
• Goodwill on consolidation
• Impairment
• Negative goodwill
• Net assets