RECENT NEWS  Jun 16  Comment 
WASHINGTON (dpa-AFX) - The United Nations entity tasked with promoting gender equality has appointed Academy Award-winning American actor Anne Hathaway as global Goodwill Ambassador. A long-standing supporter of women's and girls'...  May 16  Comment 
Read full story for latest details. Sponsored: Drivers Feel Stupid For Not Knowing This New Rule Do NOT pay your next car insurance bill until you try this.  May 13  Comment 
Read full story for latest details. Sponsored: Drivers Feel Stupid For Not Knowing This New Rule Do NOT pay your next car insurance bill until you try this.
The Hindu Business Line  May 12  Comment 
Sachin Tendulkar, Salman Khan and Abhinav Bindra had earlier accepted the role offered by the IOA  May 3  Comment 
WASHINGTON (dpa-AFX) - UNHCR, the UN Refugee Agency, Monday announced the appointment of Academy Award winning actor Cate Blanchett as its global Goodwill Ambassador. The announcement comes as Blanchett returns from a mission to Jordan to...
The Hindu Business Line  May 3  Comment 
With Salman Khan’s appointment drawing flak, the IOA had approached Abhinav Bindra, Sachin Tendulkar and AR Rahman.
The Economic Times  Apr 28  Comment 
Natural resources conglomerate Vedanta Ltd reported a fourth-quarter adjusted loss of Rs 11,181.26 crore, hurt by a non-cash charge of Rs 12,304 crore.
The Economic Times  Apr 25  Comment 
The company had reported a net loss of Rs 240.82 crore in the corresponding period a year ago. Following the development, the stock sank 5.11 per cent to hit a low of Rs 146.65 on BSE.
Motley Fool  Apr 21  Comment 
These Fools read between the lines to tease out the less-than-stellar truth behind Constellation Brands’ seemingly impressive quarter.
Reuters  Feb 29  Comment 
Yahoo Inc said it may have to write down the goodwill value of Tumblr, more than two years after the web pioneer spent $1.1 billion to buy the microblogging site.


Goodwill is the premium paid by an acquiring company over and above the acquired company's tangible book value. On a company's balance sheet, goodwill represents the sum of all the premiums the company has paid for all of its acquisitions (although occasionally goodwill from past acquisitions whose value has fallen is written down).

Because tangible book value is equivalent to the replacement cost of a company - IE, what it would cost to buy all the company's properties, buildings, factories, and machines, hire all its workers, etc. - you might think an acquiring company would never pay more than tangible book value. After all, the acquiring company could simply build the acquisition target company from scratch for the price of its tangible book value.

However, most companies have intangible assets - such as relationships with key customers, patents and trademarks, the unique character of its employees, which are not so easily replaced. So, acquiring companies frequently pay more for a company than its tangible book value.

The acquiring company must carry the premium it pays for its acquisition targets above tangible book value as "goodwill".

Goodwill is an intangible asset arising from an acquisition, but not all intangible assets are goodwill - only those a company owns as a result of purchasing other companies. It should be noted that because Goodwill is technically an intangible asset, companies will occasionally lump the two together on the balance sheet, typically as "Goodwill and Intangibles".

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