goodwill & intangible asset, Accounting - Auditing

[mahesh padhiyar]

Dear Expert

Pl. give brief idea abt goodwill & intelligible asset

what is accounting treatment

With Regards & Thanks

Mahesh

Posts / Replies

[MARIAPPAN GOVINDARAJAN]

Goodwill is the repute earned by a company or a business firm over a long period of time. When the business is sold or transferred goodwill can be sold for a consideration. Intangible assets are intellectual properties like trade mark, patent, design, copy right etc., Goodwill is also considered to be a intangible asset and who purchased the goodwill is also eligible for depreciation.

[Bhumish Padshah]

Goodwill is the reputation earned by the company over the period of time.As per Accounting standard 26 "Intangible Assets" internally generated goodwill can not be recognized as asset in the accounts;it can be recognized only if it is purchased and valuation of the same can be done as per the norms laid down in AS 26.

Other intangible asset includes patent, trademark, copyright,job workers network,suppliers and distributors network.The allocation of value to these assets should be based on the judgement of the management.