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Can someone please explain what internally generated goodwill is and how it is accounted for
@anisa786
It’s something, that company generated during its life. For example, it may be good reputation in the view of customers, or it may be worldwide-known brand, that the company had developed.
But accountants can’t decide how much is it worth. There are technical problems (e.g., how much developing of logo costs?), and also you cannot divide such goodwill from the company as a whole.
So internally generated goodwill can’t be accounted for in books.
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