Goodwill
Recognizing the Premium Paid
Goodwill represents the future economic benefits arising from assets that cannot be individually identified and separately recognized. It is measured as the excess of the consideration transferred plus any noncontrolling interest over the fair value of identifiable net assets acquired.
Note
Goodwill is not amortized under U.S. GAAP but is tested periodically for impairment.
Summary
Goodwill represents the premium paid above the fair value of identifiable net assets.