Goodwill - Financial definition
Concise definition of the term goodwill
In finance, goodwill refers to the intangible asset representing the excess purchase price over the fair market value of assets acquired in a business acquisition.
Comprehensive definition of the term goodwill
Goodwill in finance embodies the intangible value derived from factors such as brand reputation, customer loyalty, and strategic positioning, often arising from acquisitions. It serves as a reflection of future earning potential beyond tangible assets and is subject to periodic impairment tests to ensure its accurate valuation in financial reporting.