Accounting Dictionary - Letter G
is the excess of the price paid for an entity (as a whole) over the value of all net assets purchased (i.e., value of assets less value of liabilities). Goodwill can only be recorded under the purchase method in a business combination. Goodwill is an intangible asset with an indefinite life. Goodwill is not amortized but is subject to a periodic impairment test.
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