Goodwill: related pages

Amortisation

Amortisation is the equivalent of depreciation for intangible assets.

Fair value

The value of an asset or liability in an arms length transaction between unrelated willing and knowledgeable parties. A concept used in many accounting standards including the IFRSs.

Fixed asset

Fixed assets are assets that have a remaining life over an year.

IFRS

International Financial Reporting Standards are accounting standards set by the International Accounting Standards Board.

Impairment

The cost shown in the profit and loss account as the result of a fall in the value of an asset.

Intangible assets

Assets that do not have a definite form. They include goodwill, patents, trademarks and capitalised development costs.

Purchase method

Requires that the buyer must be identified, and therefore goodwill created, in accounting for mergers and acquisitions.

Tangible assets

Assets that have a physical form and financial assets, as opposed to intangible assets.