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What mean by Goodwill,explain with example.
Thanks for invitation,
"Goodwill", can be precisely define as an intangible asset that may be arises from acquisition of one company by another for a premium value.
Examples for that, the company's brand name, property 's technology, Clients' relationship, .....
Goodwill is created when one company acquires another for a price higher than the fair market value of its assets; for instance, if Company A acquires Company B for more than the fair value of Company B's assets and debts, the amount left over is listed on Company A's balance sheet as goodwill.
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.
