Financial Statements

Goodwill

Definition

What is Goodwill?

An acquisition asset representing the excess purchase price over the fair value of identifiable net assets.

Example in practice

A buyer pays above book value for expected synergies and records goodwill.

Keep learning

Income generated from selling goods or services before expenses are deducted.

The percentage increase or decrease in revenue over a period.

Direct costs attributable to goods or services sold during a period.

Gross profit expressed as a percentage of revenue.

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