All businesses are comprised of a variety of assets, both tangible and intangible. One intangible asset is goodwill. Goodwill is a term used in a general sense to represent intangible assets of a business. However, goodwill can be defined in different ways, unlike certain other assets (e.g., cash and marketable securities), for which there is no ambiguity.
This article discusses the identification and valuation of goodwill, including situations in which the valuation of goodwill often arises.
What Is Goodwill?
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