Goodwill can be divided into three categories.
A company is required to compute and report goodwill as part of its yearly balance sheet.
It’s easy to see that goodwill is subjective, and as such can be very hard to compute.
The terms goodwill and intangible assets are sometimes used interchangeably, but there is a difference between them in the accounting world.
Goodwill has a place in the business world: in fact, it has a very specific meaning.