- In simple terms, goodwill is the present value of the expected future income in excess of a normal return on the investment intangible assets or for the excess of the price paid for a business as a whole over the book value or over the computed or agreed value of all tangible net assets purchased.
- It is the benefit and advantage of the good name, reputation, and connections of a business.
- It cannot be touched and felt and therefore, goodwill is an intangible asset.
In reply to Kazi Imran Pranto
Re: Why goodwill is called intangible asset? Explain
by Shahana Kabir -
Thanks for response.