As an accounting expert with extensive experience in financial analysis and reporting, I can provide a detailed explanation of goodwill in accounting.

Goodwill is an intangible asset that represents the excess value paid for an acquired company over its net tangible assets. It is often recorded when one company purchases another and is determined by the difference between the purchase price and the fair market value of the net assets acquired. Goodwill is considered an intangible asset because it encompasses the future economic benefits that are not physical in nature, such as brand reputation, customer loyalty, and employee expertise.

In accounting, goodwill is tested for impairment annually or more frequently if there is an indication of impairment. Impairment occurs when the carrying value of the goodwill exceeds its fair value. If impairment is identified, the difference must be written off as an expense, which can significantly impact a company's financial statements.

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Goodwill in accounting is an intangible asset that arises when a buyer acquires an existing business. ... The goodwill amounts to the excess of the "purchase consideration" (the money paid to purchase the asset or business) over the total value of the assets and liabilities.read more >>