What is the Goodwill?

Goodwill or goodwill is known in accounting as an intangible that determines the intangible value of a company. It is closely related to brand equity and determines the reputation of the company. It is determined by multiple factors and can have a very positive or negative effect on the market situation of a brand or company. When this intangible value is positive it is called Goodwill.

In the General Accounting Plan it is considered as a asset since it is formed by a series of variants that affect the value of the company. Some of these variants are efficiency, prestige, clients or the image it has for the public. This is why companies can have a higher value than the sum of the elements that make it up. Therefore, we can consider the Goodwill as the difference of the value of the assets of the company and the total value of the company.

Some factors that can significantly increase Goodwill can be the appearance of important advertising campaigns, new agreements that the company is reaching to improve its future, innovation of products and services, or the positive vision of customers. towards the company for any phenomenon that has occurred in a short time.

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