Intangible assets refer to identifiable non-monetary assets without physical form owned or controlled by an enterprise. Intangible assets can be divided into broad and narrow senses. Intangible assets in a broad sense include monetary funds, accounts receivable, financial assets, long-term equity investments, patent rights, trademark rights, etc., because they do not have physical entities, but are expressed as certain legal rights. or technology. However, in accounting, intangible assets are usually understood in a narrow sense, that is, patent rights, trademark rights, etc. are called intangible assets. Goodwill refers to the potential economic value that can bring excess profits to business operations in the future, or the capitalized value of a company whose expected profitability exceeds the normal profitability of identifiable assets (such as the average social return on investment). Goodwill is an integral part of the overall value of a business. In a business merger, it is the difference between the investment cost of purchasing the business and the fair value of the net assets of the merged business. New in theory. But from an accounting perspective, no.

The standards stipulate that intangible assets are identifiable non-monetary assets that have no physical form and are owned or controlled by an enterprise. Therefore, due to its non-identifiable nature, the new standard separates goodwill from intangible assets and recognizes it as an independent asset.