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.

Goodwill is an accounting measure of a business's popularity and strength in its market. While goodwill's value on a company's books may be decreased due to market conditions, the only way this asset ...

Discover how badwill, or negative goodwill, impacts accounting when purchasing companies at below market value. Learn examples and effects on financial statements.

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...

Goodwill impairment is an accounting term used to describe a reduction in the value of goodwill on a company’s balance sheet. Goodwill itself represents the excess amount a company has paid over the ...