{"id":3925,"date":"2023-03-02T15:03:53","date_gmt":"2023-03-02T15:03:53","guid":{"rendered":"https:\/\/fisdomdevel.wpengine.com\/glossary\/goodwill\/"},"modified":"2023-03-02T15:03:53","modified_gmt":"2023-03-02T15:03:53","slug":"goodwill","status":"publish","type":"post","link":"https:\/\/www.fisdom.com\/glossary\/goodwill\/","title":{"rendered":"Goodwill"},"content":{"rendered":"<p>\nGoodwill is an intangible asset and generally comes into picture when a company purchases another company. Goodwill means a company\u2019s brand name, customer base, customer \/ employee relations, brand image, patents, niche technology etc.<\/p>\n<p>Goodwill is recorded in a situation in which the purchase price is higher than the sum of the value of assets and intangibles as well as the liabilities. The cost of a business evaluation includes, apart from the tangible assets, fair market value and liabilities plus the amount of goodwill. Goodwill can be seen as a company&#8217;s reputation or market standing for expected future growth and profits which exceed the rate of profits in the industry. For accounting purposes, goodwill should be of monetary value.<\/p>\n<h2>How is Goodwill calculated?<\/h2>\n<p>The fair market value of assets and liabilities is subtracted from the purchase price of a company:<\/p>\n<p>Goodwill = P\u2212(A+L)<br \/>\nhere,<br \/>\nP = Purchase Price of the target company<br \/>\nA = Fair market value of Assets<br \/>\nL = Fair market value of Liabilities<\/p>\n<h2><\/h2>\n<h2><\/h2>\n<h2><\/h2>\n<h2><\/h2>\n","protected":false},"excerpt":{"rendered":"<p>Goodwill is an intangible asset and generally comes into picture when a company purchases another company. Goodwill means a company\u2019s brand name, customer base, customer \/ employee relations, brand image, patents, niche technology etc. Goodwill is recorded in a situation in which the purchase price is higher than the sum of the value of assets [&hellip;]<\/p>\n","protected":false},"author":67,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[11],"tags":[],"class_list":["post-3925","post","type-post","status-publish","format-standard","hentry","category-stocks"],"_links":{"self":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts\/3925","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/users\/67"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/comments?post=3925"}],"version-history":[{"count":0,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts\/3925\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/media?parent=3925"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/categories?post=3925"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/tags?post=3925"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}