Goodwill

Metadata

  • Id: bs_goodwill
  • Type: fundamentals
  • Subtype: balance_sheet
  • Units: currency
  • Decimal Points: 0
  • Currency Convertible: Yes

Description

The value of a business’s intangible asset that represents the excess of the purchase price paid for an acquired business over the fair value of its identifiable net assets. Goodwill reflects the value of the acquired business’s reputation, customer loyalty, synergies, growth potential, etc. Goodwill is reported on the balance sheet at its acquisition cost less accumulated impairment losses. Goodwill is not amortized but tested for impairment at least annually or more frequently if there are indicators of impairment.