What is goodwill on a balance sheet

Mar 21, 2018 · When looking at a balance sheet, goodwill can be found as an asset account. Goodwill is an intangible asset, meaning an asset that cannot be sold or transferred. Cash, investments, equipment, factories, and other tangible assets are fairly easy to appraise.

The Consolidated Balance Sheet. No matter how goodwill arises, the accountant's challenge is to measure and report it in the consolidated statements - along with all the other assets and liabilities of the parent and sub. Study the following consolidated balance sheet for Premier and Sledge:

Jul 01, 2015 · Like most of the balance sheet, it gets glossed over as people rush to the income statement to find revenue and EPS, the headline numbers that supposedly “drive” stock performance. In reality, Goodwill is an important number to keep an eye on. Since goodwill is an intangible asset, it's recorded on the balance sheet as a noncurrent asset meaning it's a long-term asset similar to fixed assets like property, plant, and equipment. There are guidelines stipulated by the Financial Accounting Standards Board in determining the value of goodwill for a company. Though both are intangible, goodwill is specifically reserved for items that are not typically found on the balance sheet like reputation and brand awareness. Companies typically only have goodwill on their balance sheets if they purchase another company or asset for more than the book value or fair market value of the company or asset.