Goodwill

Start with the idea of goodwill

The Goodwill topic page lists user-made mind maps that explain goodwill as an immaterial or intangible value. A useful starting point is a map titled Goodwill that connects this value to customers, efficiency, organization, credit, prestige and experience. It also mentions a business's position in relation to third parties.

As you read, note which factors the map associates with goodwill. Then compare it with another Goodwill map that includes location and clientele. The maps offer a way to see how contributors have grouped the factors around the same central idea.

Move from business factors to accounting

After exploring those introductory maps, look at the map on depreciation, intangible assets and goodwill. Its excerpt describes goodwill as the difference between an acquisition price, excluding acquisition fees, and the fair value of identified net assets. Comparing this definition with the business-factor maps can help you practice explaining goodwill in different terms.

The page also lists a map about negotiations of intangible assets in biotechnology. Its excerpt asks how the author defines goodwill and points to examples. You could look at it after the introductory maps to see how that resource presents the idea.

Use the maps together

There are no quizzes on this topic page, so the mind maps are the place to start. Read one map, then try explaining its central idea without looking. Return to it to check which factors or terms you included. Compare your explanation with another map and note any differences in emphasis.

Goodwill is a section of a wider unit within Accounting and auditing. The map on depreciation and intangible assets offers a connection to that unit alongside the more focused Goodwill maps. Choose a map and use it to begin your study.