Goodwill is a non-physical asset, such as a brand name or intellectual property. It is assessed when a firm buys another firm or buys some part of that firm's business.

The general formula to calculate goodwill under IFRS is: Goodwill=(C+NCI+FV)−NAwhere:C=Consideration transferredNCI=Amount of non-controlling interestFV=Fair value of previous equity interestsNA ...