DOCENTE: LIC. Regina Pereira Pizarro CURSO: Ingles Avanzado
IIGOODWILLMaryori Yusept Cori Rodriguez Katteryn Yessenia Amaya
SandovalAndrea Sacatoma Maquera
1
It is an intangible asset that reflects the connections of a
business customer, reputation and other similar
factors.GOODWILL
Valuation of goodwillSince goodwill is not something you can
touch or feel, it can sometimes be difficult to estimate its true
value. This is the reason for that goodwill is an intangible asset
accounting.
There are many factors that may be useful in the calculation of
goodwill:
If customers have respect for society, can potentially share a
positive message and recommend the company to others, ultimately
putting more capital into the companyIf a company has launched a
major advertising campaignIncrease the value of the company
The accountsThe goodwill can be written off to reserves or
recognized as an intangible asset on the balance sheet and written
off amortization of the income statement over its useful life.
Look at the following drawings which depict different reasons
for paying for goodwill , them fill in the captions . Choose from
the followinge) A well-known name
e) A well-known name b) The business enjoys a monopolyThe
business enjoys a monopoly
d) Skilled labour forced) Skilled labour force
a) Cost in research and developmentc) Trade marks and patentsf)
Negative goodwill g) Location of the premisesc) Trade marks and
patents g) Location of the premises
a) Cost in research and developmentf) Negative goodwillGoodwill
may be treated in different ways in the accounts. Fill in he
missing words in the sentences below. Choose from the
following.AcquiredAmortizedBalance sheet CreatedReservesBrought
EliminatedUsefulPurchased goodwill should normally be (1)
___________Immediately as an asset from the books when it is (2)
___________. In some companies, it may be appropriate for purchased
goodwill to be (3) ____________ year by year over its (4)
___________ economic life. Goodwill which has been (5)
______________ within the company and not bought, should never be
(6) _____________ into the books at all. When there is negative
goodwill, it should be added to the (7) ________ in the (8)
____________ of the
firm.EliminatedAcquiredAmortizedUsefulCreatedBrought
ReservesBalance sheet
