3 ms·
Can anyone shed some lights on how do they calculate Goodwill?
by reactor 13y ago
Can anyone shed some lights on how do they calculate Goodwill?
- brotchie 13y agoSomebody correct me if I'm wrong but my understanding of goodwill is that it is calculated as the difference between the net asset value of an acquired company and its acquisition price; that is, Google buys Motorola for $12bb, net value of all Motorola's assets is say $8bb, then goodwill increments by $4bb.
- apapli 13y agoCorrect, then you typically write it off as a cost over a number of years
- Nicholas_C 13y agoGoodwill is actually tested for impairment. Although it is generally amortized for valuation purposes.
- Nicholas_C 13y agoGoodwill is actually tested for impairment. Although it is generally amortized for valuation purposes.