Sometimes companies purchase businesses for more than what they are actually worth. The difference between a business' actual worth and what someone pays for that business is referred to as goodwill.

The Financial Accounting Standards Board has a project to review accounting for goodwill subsequent to its acquisition — again. The issue is whether to continue goodwill impairment testing as required ...

There is a lot of discussion these days about accounting for goodwill, especially with respect to accounting issues subsequent to its acquisition. This debate is driven by managerial criticisms of ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Goodwill is a kind of intangible asset; it ...

Assessing goodwill for impairment became more challenging during the COVID-19 pandemic because of significant changes in business operations and overall economic uncertainty. Considering goodwill ...

In addition to the serious public health threat it poses, the COVID-19 pandemic has affected the current and future financial performance of many entities, with its impact showing on both projections ...

Two of the accounting rules by which companies play the merger game are about to change. A boost to earnings is expected to be one immediate effect. Longer-term, the rule changes will force ...

Every business balance sheet contains a line item called “goodwill.” In accounting terms, goodwill represents intangible ...

This report is one of a series on the adjustments we make to convert GAAP data to economic earnings. Reported earnings don’t tell the whole story of a company’s profits. They are based on ...

When you feel good about something, you’re usually willing to pay more for it. It’s the same concept when a company considers acquiring another. As a result, acquiring companies are often willing to ...

Though it sounds bad, "negative goodwill" is actually a good thing for a business owner, because it means your company has bought another business for less than that company's fair market value. In ...

Goodwill in accounting and investing is a term used to describe intangible assets that don't appear in hard numbers on a balance sheet. These can include a host of things that companies tend to value ...