Economic Goodwill Vs. Accounting Goodwill – A Treaty On The Competitive Advantages Of A Business

Economic Goodwill

Economic Goodwill vs. Accounting Goodwill - A Treaty On The Competitive Advantages Of A Business by  Anton F. Balint

Accountancy is a fascinating profession. It uses numbers to explain what a business is and does – at least in theory. The practice of financial reporting ought to give current and potential investors the necessary data about a particular business. In other words, it should be the bedrock of all investment decisions. However, on the balance sheet of most companies, two assets spread fear in the heart of conservative investors: intangibles, such as IP rights, and goodwill. While the former is arguably as hard to trace as the latter, there are methods, algorithms and...