Goodwill is defined as the amount by which a companys value exceeds the value of its individual assets and liabilities. Goodwill is only recorded when a company or business segment is purchased. Good will is not amortized. Goodwill includes such things as a skilled workforce, good customer relations, and good location.

If a company has never purchased another company then goodwill cannot appear on its balance sheet. Do you think this is a good accounting practice?

Provide in 250 words, explaining your feelings on this topic.