goodwill Definition
good·will (-wil′)
noun
- a friendly or kindly attitude; benevolence
- cheerful consent; willingness
- Accounting an intangible asset which takes into account the value added to a business firm as a result of patronage, reputation, etc.
goodwill Finance Definition
An
intangible asset above and beyond the concrete value of a business or asset.
For example, the value of a businesss good name and customer relationships.
Goodwill is listed as an asset on a companys balance sheet and must be
amortized over its reasonable life, which cant exceed 40 years. If a large
corporation purchased a small business for $25 million, but its actual value is
determined to be $35 million, goodwill is valued at $10 million.
goodwill Usage Examples
Preposition: of
- landholder: Conservation of our wild heritage depends on the goodwill of landholders - please don't abuse it!
- landowner: SNH rely on the goodwill of landowners and farmers to further their conservation achievements.
- profession: The goodwill of the profession has been shocked and dissipated, for on no material point have its wishes been met.
Converse of object
- amortize: Apart from amortizing goodwill arising from acquisitions, none of these changes has had a material impact on the Group's accounts.
- generate: Our venture into Asian territory met with more success and the goodwill generated may well be the basis of further collaboration.
- acquire: Channel 4 has acquired considerable goodwill for its excellent coverage of racing.
- exclude: As at 31 December 2001, Euroclear had net assets excluding goodwill of E650 million ( £ 397 million ).
- maintain: It is the planned and sustained effort to establish and maintain goodwill and mutual understanding between an organization and its publics.
- retain: If you want to retain goodwill, you will probably want to purchase the business as soon after insolvency as possible.
Adjective modifier
- adherent: It might therefore be divisible into two kinds: adherent free goodwill and separable free goodwill.
- negative: Negative goodwill should be written off to P&L in the periods expected to benefit from the associated assets.
- immense: Despite the immense goodwill of a grateful nation, Miller has slumped into struggle and despair.
- seasonal: Goodwill to All - 21/12/05 Leeds Met staff have been busy spreading seasonal goodwill throughout and beyond the university.
- mutual: In that sense the Kurdish problem in Turkey is genuinely soluble through mutual goodwill.
- tremendous: There is tremendous goodwill from a number of high-profile organizations, but the problems are daunting.
Modifies a noun
- amortization: The lower goodwill amortization charge in 2005 reflects the goodwill impairment charge taken in 2004.
- ambassador: Jolie, who is a goodwill Ambassador for the United Nations, indicated that the Afghan refugee crisis is not yet over.
- gesture: Prime Minister Ariel Sharon said it's a goodwill gesture to Palestinian leader Mahmoud Abbas.
- impairment: The lower goodwill amortization charge in 2005 reflects the goodwill impairment charge taken in 2004.
Preposition: by
profession: An early special meeting of Council was urged to endeavor to arrest the loss of goodwill by the profession.

