Goodwill

An Intangible Assets that arises when a company is acquired and the purchase price is more than its Book Value.

The value of an Intangible Asset can be amortized over time, the Amortization is reported is reported alongside Depreciation on the Income Statement.

The amortized value must be re-evaluated on a periodic basis; if the recoverable value of the asset falls below the value listed on the Balance Sheet, an Impairment loss is recorded on the Income Statement.

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Goodwill

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