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What Is The Difference Between Goodwill And Other Intangible Assets? |
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Answer» Goodwill typically stays the same over many years and is not AMORTIZED. It changes only if there’s goodwill impairment (or another acquisition). Other Intangible Assets, by contrast, are amortized over several years and affect the Income Statement by HITTING the Pre-Tax Income line. There’s also a difference in terms of what they each represent, but BANKERS rarely go into that level of detail – ACCOUNTANTS and valuation specialists worry about assigning each one to specific ITEMS. Goodwill typically stays the same over many years and is not amortized. It changes only if there’s goodwill impairment (or another acquisition). Other Intangible Assets, by contrast, are amortized over several years and affect the Income Statement by hitting the Pre-Tax Income line. There’s also a difference in terms of what they each represent, but bankers rarely go into that level of detail – accountants and valuation specialists worry about assigning each one to specific items. |
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