(a) Define the term goodwill and distinguish between internally generated goodwill and goodwill acquired in...

Question:

(a) Define the term "goodwill" and distinguish between internally generated goodwill and goodwill acquired in a business combination.

(b) Identify the main features of goodwill which distinguish it from other intangible assets and which warrant a special accounting treatment.

Goodwill
Goodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of... Intangible Assets
An intangible asset is a resource controlled by an entity without physical substance. Unlike other assets, an intangible asset has no physical existence and you cannot touch it.Types of Intangible Assets and ExamplesSome examples are patented...

Fantastic news! We've Found the answer you've been seeking!