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Goodwill is an intangible asset that arises when a company is acquired for a price greater than the fair value of its identifiable net assets. Goodwill represents the future economic benefits from assets that cannot be individually identified. It is recorded as the excess of purchase price over the fair value of net assets acquired. There are several methods to value goodwill such as average profits basis, super profits basis, and capitalization method.

Author

POOJA

Language

EN