goodwill calculation

USAGE SUMMARY

The phrase "goodwill calculation" is correct and usable in written English.
It can be used in contexts related to finance, accounting, or business valuation, specifically when determining the value of goodwill in a company. Example: "The auditor performed a goodwill calculation to assess the intangible assets of the company during the acquisition process."

✓ Grammatically correct

Wiki

News & Media

Human-verified examples from authoritative sources

Exact Expressions

2 human-written examples

Because current assets like cash and receivables can be immediately liquidated, they should not be used as part of the goodwill calculation.

WikiHow

Contact a certified public accountant or attorney to check over any goodwill calculation you have completed or if you unsure on the best way to value a business's goodwill.

WikiHow

Human-verified similar examples from authoritative sources

Similar Expressions

58 human-written examples

We also failed to exclude goodwill from our calculation of return on assets.

Forbes

"Boundless goodwill.

The New Yorker

Goodwill Among Nations".

Independent

More goodwill!

The Guardian - Sport

We exploit their goodwill.

Independent

Goodwill has somewhat evaporated".

Independent

Goodwill is critical".

The New York Times

The Goodwill sofa.

The New York Times

A lot of goodwill.

The New York Times

Expert writing Tips

Best practice

When documenting financial procedures, specify which "goodwill calculation" method is being used (e.g., discounted cash flow, market approach) to ensure clarity and replicability.

Common error

Avoid including current assets like cash and receivables when performing a "goodwill calculation", as these are readily liquidable and not part of the intangible value.

Linguistic Context

The phrase "goodwill calculation" functions as a noun phrase, typically serving as the object of a verb or preposition in sentences related to finance and accounting. Ludwig provides examples where it is associated with actions like 'check over' or processes relating to asset liquidation.

Expression frequency: Rare

Frequent in

Wiki

50%

News & Media

50%

Less common in

Formal & Business

0%

Science

0%

Encyclopedias

0%

Ludwig's WRAP-UP

The phrase "goodwill calculation" is a grammatically correct noun phrase used within the domains of finance and accounting to denote the process of determining the value of goodwill. According to Ludwig, it's essential to exclude current assets from this calculation. While "goodwill calculation" appears infrequently, its usage is consistent in contexts involving business valuation and financial reporting. Alternatives like "goodwill assessment" and "goodwill valuation" offer similar meanings. When writing about financial matters, specifying the method used for the "goodwill calculation" ensures clarity and accuracy.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

goodwill assessment

Focuses on the evaluation aspect rather than the calculation itself.

goodwill valuation

Highlights the process of determining the monetary value of goodwill.

determining goodwill value

Emphasizes the determination of the value, rather than the specific calculation.

computing goodwill

Uses a different verb to describe the calculation process.

calculating goodwill impairment

Specifically addresses the calculation related to the reduction in goodwill value.

goodwill measurement

Focuses on the act of measuring and quantifying goodwill.

assessing goodwill

Emphasizes the evaluation and judgment of goodwill's worth.

goodwill amortization calculation

Highlights calculating the reduction of goodwill over time.

valuation of intangible assets

Expands the scope to include all intangible assets, with goodwill being one of them.

analysis of goodwill

Focuses on analyzing various aspects related to goodwill.

FAQs

How is "goodwill calculation" used in accounting?

In accounting, a "goodwill calculation" is used to determine the difference between the purchase price of a company and the fair value of its identifiable net assets. This calculation helps in assessing the intangible value associated with the acquired company.

What's the difference between "goodwill assessment" and "goodwill calculation"?

"Goodwill calculation" refers to the mathematical process of determining the value of goodwill, whereas "goodwill assessment" is a broader term that includes the calculation but also incorporates qualitative factors and judgment to evaluate the overall value and potential impairment of goodwill.

What are some common methods for performing a "goodwill calculation"?

Common methods for a "goodwill calculation" include the acquisition method, which involves subtracting the fair value of identifiable net assets from the purchase price, and impairment testing, which assesses if the carrying amount of goodwill exceeds its fair value.

Why is it important to have a certified professional review a "goodwill calculation"?

It is important to have a certified professional review a "goodwill calculation" to ensure accuracy, compliance with accounting standards, and to provide an unbiased opinion on the valuation, which is crucial for financial reporting and auditing purposes. Contacting a professional ensures compliance and reduces the risk of errors.