RE:goodwillGoodwill is nothing more than the intrinsic (hidden) value of a corporations reputation in a market. This is not an actual finacial amount but adds to the FS bottom line. Many, if not all producing corporations have it. One example would be for instance, starting up your own restaurant and having no customers or purchasing an existing restaurant with customers. The build-up of those existing customers (cash flow) would be part of the "goodwill" inclusion in the FS. Hope that helps.