Goodwill is an Intangible Asset

By Mandeep Kumar|Updated : July 6th, 2022

Goodwill is an intangible asset that pertains to the purchase of a company by another company. It accounts for the excess purchase price of another company. Intangible asset is not physical in nature.

Answer: Goodwill is an intangible asset that is linked with the acquisition of one company by another.

To determine Goodwill, subtract the purchase price of a company from the net fair market value of identifiable assets and liabilities. It is considered an intangible asset on the balance sheet of acquiring company under the long-term asset account. If the acquiring company purchases the company at a bargain then it is referred to as negative goodwill. The value of goodwill can be checked by the companies on their financial statement.

Summary:

Goodwill is an Intangible Asset

Goodwill is an intangible asset that is related to the buying of a company by another. It includes brand recognition and intellectual property

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