Revised GAAP Treatment for Goodwill

Date

2016

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Purdue University Global

Abstract

Goodwill can be informally understood as the price paid during acquisition of an existing business that is above the cumulative net value of all the assets of the acquired business. For example, if the net value of an acquired business’s assets is $1,000,000 but the purchase price of that business is $1,250,000, then “goodwill” would be $250,000. (Article's first paragraph used in place of an abstract.)

Description

Originally published on the “Industry Insights” section of the Kaplan University website and republished on the Purdue Global website blog.

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