Buy custom What is Goodwill 
    
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            | Topic: | Business | 
        
            | Number of pages / Number of words: | 5 / 1326 | 
                
    
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It cannot be sold as a separate asset.
? has a value may fluctuate widely according to internal and external circumstances and this value may be subjective
The fact then, that this intangible asset cannot be included in the balance sheet supports the accounting allowances made for purchased goodwill in FRS 10, published in 1997 which stated:
Internally generated intangibles should only be recognised where they have a readily ascertainable market value
It is, then, only when a company needs to market or purchase this asset through a sale or acquisition that it becomes important to be able to place a value on the intangible or intellectual assets, in particular, goodwill...
        
        
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As the goodwill has been developed by the business internally over a long period in a certain trade, the market is able to estimate that the value of the business as a going concern is higher than the value of its net assets.
ACCOUNTING FOR GOODWILL
Goodwill arises is calculated as the difference between the value of the business as a whole and the aggregate of the ?fair' values of its various identifiable assets both tangible and intangible...
        
        
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            General points of the essay
            
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