Question

The difference between good will and trademark. Explain each in details with an accounting perspective (not just a definition)

Answer 1

Goodwill referes to an intangible asset which is recognised when a business acquires another business and is equal to the excessive amount paid over the net assets of the firm . For example abc acqud xyz for 50 million dollars while the net assets were equal to 49 million dollars, the 1 dollar here was goodwill.

While trademark refers to another intangible asset which prevents other individuals or entities from copying an entities name, brand, product, branding etc through a legal recognition. For example- i develop a battery for phones which charges to 100 percent in 10 minutes, if i get a trademark for the same for 2 years. Nobody other than me can produce the same good via same process