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).


Learn more about Goodwill

More on intangible assets: Business Simulation, Copyright, Human Capital, Innovation Capital, Intangible Asset, more...

You may also like: Full-time MBA, Executive MBA, Executive Education, Online MBA.

MBA Brief offers concise, yet precise definitions of concepts, methods and models as taught in a study Master of Business Administration.

We like to keep things short, and provide links to learn more about your subject.

Add MBA Brief to your desktop / iPad


© 2023 MBA Brief - Last updated: 7-6-2023  -  Privacy   |   Terms