Question Details

	Username: Peter Rating: Asked to: Tom Burke Date Created: 06 May 2016
Category	46
Tag	Financial
Question	What is 'Goodwill'?

Advice from Guru

Hello Peter,

Goodwill is an intangible asset that arises as a result of the acquisition of one company by another for a premium value. The value of a company’s brand name, solid customer base, good customer relations, good employee relations and any patents or proprietary technology represent goodwill. Goodwill is considered an intangible asset because it is not a physical asset like buildings or equipment. The goodwill account can be found in the assets portion of a company's balance sheet.

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