Goodwill applies to business combinations, where the asset being bought is a whole business and not the assets of a business.
Goodwill is recorded separately as a form of intangible asset on acquisition , and impairment expenses can be recorded against it ( see impairment of non-current assets ). Goodwill cannot be onsold, but another entity can purchase the subsidiary business with a new agreed amount of goodwill.
Sometimes, the acquirer or buyer pays less than the fair value of the assets making up the acquired business, so the opposite of goodwill is a bargain, which is classed as an other income or gain (not arising from normal operations, and hence not profit ), and equals the total fair value of the acquired business's assets , less the bargain amount paid to acquire it, as agreed to by the acquiree ( the former owner ).
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