Goodwill
Acquisition-accounting residual recognized after measuring consideration, non-controlling interests, and identifiable net assets.
Goodwill measurement and joint-arrangement presentation, including impairment risk, equity accounting, and proportional consolidation.
Goodwill is the residual created by acquisition accounting after identifiable net assets and other acquisition components are measured. It is not the same as a separately identifiable intangible asset, and internally generated reputation or customer loyalty is generally not recognized as goodwill.
The balance matters after acquisition because it is exposed to Goodwill Impairment. IFRS tests goodwill within cash-generating units or groups of units, while U.S. GAAP uses reporting units. Those different testing levels and value benchmarks can change the timing of a write-down.
Proportional Consolidation is a line-by-line presentation method associated with historical joint-venture accounting and limited framework-specific use. Under current IFRS 11, joint ventures use the Equity Method of Accounting, while joint operators recognize their contractual rights to assets and obligations for liabilities.
These pages are most useful when comparing acquisitive businesses, evaluating impairment exposure, or normalizing revenue, debt, assets, and profit for different consolidation methods.
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Acquisition-accounting residual recognized after measuring consideration, non-controlling interests, and identifiable net assets.
Line-by-line method that reports an investor's share of a joint arrangement's assets, liabilities, revenue, and expenses.