Suppose you see goodwill in the balance sheet. What does it mean?

Goodwill arises when a company acquires another entire business. The amount of goodwill is the purchase consideration of the business minus the fair market value of the net assets that can be identified, and the liabilities obtained in the purchase. Goodwill does not mean any of the following – company’s brand name, solid customer base, good customer relations, good employee relations etc.