goodwill

goodwill An intangible asset reflecting a business’s customer connections, reputation, and similar factors. It can be valued as the difference between the value of the separable net assets of a business and the total value of the business. Purchased goodwill is the difference between the fair value of the price paid for a business and the aggregate of the fair values of its separable net assets. It is generally recognized as an intangible asset in the balance sheet and written off by amortization to the profit and loss account over its useful economic life (which is assumed to be no more than five years if it cannot be realistically estimated). Internally generated goodwill should not be recognized in the financial statements of an organization. The treatment of goodwill is now governed by Section 19 of the Financial Reporting Standard Applicable in the UK and Republic of Ireland. The relevant International Accounting Standards are IAS22, Business Combinations; IAS36, Impairment of Assets; and IAS38, Intangible Assets.

• Standard and Poor’s 500
• standard application blank
• standard cash flow pattern
• standard cost allowance
• standard costing
• standard deviation
• standard direct labour cost
• standard direct labour rate
• standard direct materials cost
• standard direct materials price
• standard fixed overhead cost
• standard hour
• Standard Industrial Classification
• standardization strategy
• standardized marketing mix
• standard marginal costing
• standard materials usage
• standard mix
• standard operating profit
• standard overhead cost
• standard performance
• standard production cost
• standard purchase price
• standard rate
• standard selling price