All articles in this category pertain to goodwill accounting. In accounting, goodwill is an intangible asset that is created after one entity purchases another entity or asset for more than that entity’s or asset’s fair market value. It is recorded on the balance sheet as a long-term asset. Companies are required to review goodwill recorded on their financial statements each year and report any impairments.
Learn more about goodwill accounting and how to calculate it below.