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Please Define Good Will & Key Money

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تم إضافة السؤال من قبل Muhammad Umair Arain , General Accountant , Heart Beat Medical Center & One Day Surgery LLC
تاريخ النشر: 2015/03/18
Tahir Yaqoob
من قبل Tahir Yaqoob , Accounts Manager , Gujranwala

Key money is one of several forms of payment made to a landlord. The term has various meanings in different parts of the world. It sometimes means money paid to an existing tenant who assigns a lease to a new tenant where the rent is below market. It sometimes means a bribe to a landlord. In other parts of the world, it is used anonymously with normal security deposits, which are used to cover nonpayment of rent and excessive damage to a rental unit.

 

Good Will an intangible asset that arises as a result of the acquisition of one company by another for a premium value. The value of a company’s brand name, solid customer base, good customer relations, good employee relations and any patents or proprietary technology represent goodwill. Goodwill is considered an intangible asset because it is not a physical asset like buildings or equipment. The goodwill account can be found in the assets portion of a company's balance sheet.

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