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Goodwill on balance sheets is a technical thing and is quite different from common parlance "goodwill". It's the fudge factor introduced when doing an acquisiti
by im3w1l 4y ago
Goodwill on balance sheets is a technical thing and is quite different from common parlance "goodwill". It's the fudge factor introduced when doing an acquisition to make the numbers balance up correctly.
- brookst 4y agoYes — my point is that goodwill is intended to explain the difference between book value and purchase price. If something is “worth” $500, as evidenced by market cap, why pay $600? Because it’s worth $600 to you. That extra $100 is hand waved away as intangibles. Maybe it wasn’t the best analogy. Was just looking for similar “it’s real but not precisely accounted for” concepts .