Goodwill amortisation (See Chapter 6 of the Vernimmen) Goodwill is assessed each year to verify whether its value is at least equal to its net book value as shown on the group’s balance sheet. This assessment is carried out by means of impairment tests. If the market value of goodwill is below its book value, goodwill is written down (see write-down) to its fair market value and a corresponding impairment loss is recorded on the income statement. More than impoverishing a company, goodwill amortisation is linked to the profits paid at the moment of acquisition, so that the company does not forget that a part of those profits was already paid or. If there is negative goodwill (badwill), under IAS rules it should be booked as deferred income over a maximum of 20 years, or allocated to various non-monetary assets subject to depreciation and amortisation that are acquired in proportion to its fair value. Also called purchase method. Goodwill amortisation (See Chapter 6 of the Vernimmen) Goodwill is assessed each year to verify whether its value is at least equal to its net book value as shown on the group’s balance sheet. This assessment is carried out by means of impairment tests. If the market value of goodwill is below its book value, goodwill is written down (see write-down) to its fair market value and a corresponding impairment loss is recorded on the income statement. More than impoverishing a company, goodwill amortisation is linked to the profits paid at the moment of acquisition, so that the company does not forget that a part of those profits was already paid or. If there is negative goodwill (badwill), under IAS rules it should be booked as deferred income over a maximum of 20 years, or allocated to various non-monetary assets subject to depreciation and amortisation that are acquired in proportion to its fair value. Also called purchase method. See all terms in the dictionary of finance To know more about it, look at what we have already written on this subject :

You get more than just a glossary on www.vernimmen.com: - A monthly newsletter with over 26,000 subscribers - 610,000 financial data for over 16,000 groups - A 279-question quiz with answers - A text book that has sold 70,000 copies - And all the rest

To find other words in the dictionary of finance, click on the first letter of the word you are looking for:

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Definitions of terms begining with the same letter as "Goodwill amortisation" :

GAAP GARP GDR GWP Gamma Gearing Global Depositary Receipt, GDR Global coordinator Golden share

Goodwill Goodwill amortisation Gordon-Shapiro formula Greenshoe Grey market Gross Written Premium Gross capital employed Gross debt Gross dividend

Gross margin Gross operating profit Gross trading profit Gross yield to maturity Growth at a reasonable price Growth potential Growth stock