Goodwill In Italy

As we close the 2017 fiscal year, let's examine the topic of Goodwill in Italy and its application to financial statements following changes to the national accounting principle, OIC 24.

Definition

Goodwill¹  is defined as the capacity of an undertaking to generate profits to a greater extent than normal, ie., the higher value achieved by its assets as a whole compared with the sum of the values of each individual asset, by virtue of the organisation of the goods and/or services in a process that is efficient and able to generate profits.

Goodwill can be generated internally or can be acquired for consideration, following the acquisition of an undertaking or equity investment, the transfer of a business or business line, a merger or demerger.