Goodwill

Goodwillan accounting concept that describesvalue ofbusiness entity not directly attributableits physical assetsliabilities.

Goodwilloften included onbalance sheet as an asset, but its valuation may be suspect if supporting evidence like an independent surveymissing. Goodwillforced ontobalance sheet whencompanypurchasedmore thansum ofvalue ofassets ofcompany. The difference betweenpurchase price andsum ofassetsby definitionvalue of"goodwill" ofcompany.

For example:

• A quality providergoods or services builds upgood reputation (UPS, L.L. Bean).
• A brand name controlled bybusiness becomes recognizable bylarge part ofpopulation (Tide, Cheerios).

Goodwill also means simplyhavewilldo good incommunity, or,simply tryhelp people whoin need (for example, serving atsoup kithen or athomeless shelter).

Other examples:

• The willdo good.
• The efforthelp out or support others.
• Willinghelp outan effortmake things better.