Goodwill in business is an intangible asset that's recorded when one company is purchased by another. It's the portion of the purchase price that's higher than the sum of the net fair value of all of ...

There is a lot of discussion these days about accounting for goodwill, especially with respect to accounting issues subsequent to its acquisition. This debate is driven by managerial criticisms of ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Goodwill is a kind of intangible asset; it ...

The value of a business goes far beyond a collection of assets, inventories or a list of services. A whole series of intangible assets are usually a big part of it, including its brand name, its ...

Though it sounds bad, "negative goodwill" is actually a good thing for a business owner, because it means your company has bought another business for less than that company's fair market value. In ...

In 2007-2008, accounting rule-makers changed the way that companies are required to account for the merger or acquisition of businesses from the existing "purchase method" to a new "acquisition method ...

In Accounting Standards Update No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, the Financial Accounting Standards Board eliminated Step 2 of ...

Assessing goodwill for impairment became more challenging during the COVID-19 pandemic because of significant changes in business operations and overall economic uncertainty. Considering goodwill ...

As part of our ongoing series on tax issues for accounting firm transactions, this article discusses the benefits of utilizing personal goodwill in accounting firm M&A deals when appropriate. Personal ...

When you feel good about something, you’re usually willing to pay more for it. It’s the same concept when a company considers acquiring another. As a result, acquiring companies are often willing to ...