Sometimes companies purchase businesses for more than what they are actually worth. The difference between a business' actual worth and what someone pays for that business is referred to as goodwill.

When a company purchases another, it often pays more than the net fair value of the target's assets and liabilities. This excess is recorded as goodwill, an intangible asset reflecting brand strength, ...

The Financial Accounting Standards Board has a project to review accounting for goodwill subsequent to its acquisition — again. The issue is whether to continue goodwill impairment testing as required ...