Goodwill represents

Question

Goodwill represents

Quizplus · Accepted Answer

Goodwill represents the difference between the acquisition value of an acquired business and the fair value of its identifiable net assets. It represents the value of intangible assets that cannot be separately identified and valued, such as brand recognition, customer relationships, and intellectual property. Management's estimate of the value of intangible assets is reflected in other assets or expenses on the balance sheet or income statement, respectively. Goodwill is recognized on the balance sheet as an asset, but is subject to periodic impairment testing to ensure it has not lost value over time.

Goodwill Represents