Goodwill

Definition: Goodwill is the accounting term for intellectual capital. It means the value of an asset owned that is intangible but has a quantifiable "prudent value" in a business. For example the corporate reputation, product and service brands and intellectual property rights.
While G is technically an intangible asset, G and intangible assets are normally listed as separate items on a balance sheet.
Instead of amortization, companies are now required to determine the fair value of the reporting units, using present value of future cash flow, and compare it to their carrying value (book value of assets plus goodwill minus liabilities).

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