An intangible asset recognised in a business combination is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognised. The future economic benefit may result from synergy between the identifiable assets acquired or from assets that, individually, do not qualify for recognition in the financial statements.
Goodwill is generally treated as having an indefinite useful life so not amortised in company accounts but instead requires annual impairment reviews.
Prior to the introduction of IFRS 3: Business Combinations, Goodwill was used to refer to all Intangible assets.
Our whitepaper on Goodwill Hunting: How Not to Miss the Mark in Financial Accounting has more information about reporting goodwill and how Brand Finance can assist.
