Example of Goodwill Checklist Form

Instructions and help about Example Of Goodwill Checklist

in this video we're going to talk about something called good will goodwill is something that's a little hard for some people to understand technically it's something that's recognized when one business purchases another business so when you acquire another business and and the purchase price the amount paid for that other business exceeds the fair value of the net identifiable assets of that business so that sounds a little complex let's just work through an example and i think it'll it'll become a lot more clear so in our example let's say the target the company that we're we're trying to acquire we're a company we're trying to acquire this new company called target company so we're gonna have to look at target companies assets and liabilities in order to figure out what its net identifiable assets are so let's say in terms of assets this company has cash of of twenty five dollars they have accounts receivable uh of fifty dollars they have inventory fifty dollars and e of a hundred d