Goodwill
Goodwill is refers to brand image of a company and monetary valuation of income that it can generate due to its brand value in the market.
Goodwill is of two types:
Self Generated Goodwill — It is brand image of a business organisation generated over a period of time of its business in the market. It is not accounted or written in Balance Sheet.
Purchased Goodwill — It is excess of price paid for a business as a whole over the Book Value or Agreed Value of all tangible net assets purchased.
Methods of valuation of goodwill
RBL Academy 