Intangible Asset
Good Son-day, late night edition! Choo Choo, The Holiday Train The Intangible Asset Luke 2:14 Glory to God in the highest, and on earth peace and goodwill toward men who rest in His favor. As part of a CEU, I enrolled into, yet another accounting course. One of the terms you will encounter in an accounting course is “goodwill”. From an accounting perspective, the term means, when a business is acquired, a buyer pays more than the market value of the business’ identifiable assets and liabilities (i.e., debts). The amount that is paid in excess is known as goodwill. Unlike tangible assets such as buildings and equipment, goodwill is an intangible asset. It cannot be sold separately from the business. The value of goodwill for a business can be hard to define as it doesn’t generate any money per se. Apple, Mercedes Benz, Macy’s, Gabberts, . . . etc., have a brand name that has goodwill. People see value in it. ...