04-13-2010, 09:07 PM
Goodwill represent excess of the purchase consideration paid in an acquisition over the fair value of net identifiable assets acquired.
Suppose, you paid Rs.10 million to acquire Rs.8 million net assets (here Rs.8 million is fair value of net assets acquired).
Rs.2 million will be goodwill acquired.
Suppose, you paid Rs.10 million to acquire Rs.8 million net assets (here Rs.8 million is fair value of net assets acquired).
Rs.2 million will be goodwill acquired.
