Definition of Goodwill

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:30AM in AAT student discussion
<BR>I need a decent definition of Goodwill to go into a knowledge and understanding booklet. I can find how to calculate it but not a decent definition.<BR><BR><BR>Can anyone help?

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Definition of Goodwill

    Goodwill is a intangible fixed asset valued according to business reputation, ie good labour force, efficient team, good location and other positive factors that increases the value of the business.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Definition of Goodwill

    According to FRS 10, the goodwill is the difference between the cost of a business and the market value of its assets. not sure though but let me know if i am wrong.<BR><BR>Arjun
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Definition of Goodwill

    Goodwill is the amount by which the value of the business exceeds the value of its net assets.<BR><BR>Its a tangible asset that is normally reflected in the capital accounts in accordance of a new business partner or retirement of a member within a partnership.<BR><BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Definition of Goodwill

    Arjun is correct.<BR><BR>Goodwill is an intangible fixed asset defined as the amount that a person buying the business is willing to pay over and above its market value due to the reputaion that has been established.<BR><BR>Mike<BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Definition of Goodwill

    Sorry I did mean intangible asset.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Definition of Goodwill

    Goodwill is an intangible fixed asset, it is defined as the difference between the value of a business over its net assets and liabilities.

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