Financials
Goodwill
An accounting asset often created when a company acquires another business for more than identifiable net assets.
What it means
Goodwill sits on the balance sheet and is tested for impairment under accounting rules. It often reflects expected synergies, assembled workforce, or other acquisition value not separately identified.
Example
A large acquisition can increase goodwill if purchase price exceeds identifiable net assets.
What not to infer
Goodwill does not prove an acquisition succeeded and an impairment does not show every cash effect.