Question

What is goodwill ?

Answer 1

Goodwill arises when a company acquires another entire business. The amount of goodwill is the cost to purchase the business minus the fair market value of the tangible assets, the intangible assets that can be identified, and the liabilities obtained in the purchase.

Answer 2

Goodwill is a long-term (or noncurrent) asset categorised as an intangible asset. The amount of goodwill is the cost to purchase the business minus the fair market value of the tangible assets, the intangible assets can be identified, and the liabilities obtained in the purchase.