> You're misinterpreting goodwill, which, IIRC, is defined as the difference between the book value of a company's assets and the price paid for it in an acquisition.
Yes, intangalbe assets do include brands, but also include discounted future expected returns and sentiment (goodwill), which can be positive.
Take your example of Amazon... amazon has a great brand, but it has that brand because the name (the brand) is associated with quality (amoungst other things), or:
Brand Value = f (goodwill, exposure(advertising),...)
As you say, a balance sheet may be at book value (could include marked-to-market investments in some cases where book value is hard to determine or non-existent) for a 'fair' value of its physical assets, but this will not be accurate because of misc intangibles...
Sorry, i seem to have gone too off-topic:
yes, this is great, i wish i could pursuade my bank to do the same, but they seem to be of the opinion open source is a security risk (expressed some posts above), and i'm not talking just making their contributions opensource, i mean running anything open source - they consider running LINUX a security risk!
Personally i think their attitude is one of a staid department, indeed they are 'old school' - no young blood, the department does not attract geeks and does not want to, because it'll out them out of a job. Intangible logic...
Has he been on speed sll weedend???
Speed is a bad drug, and in no was do i condone it's use (nor do i condone P2P piracy, though large beowolf clusters can be positive in some instances)....
But may i take this opportunity to thank you michael for the fine posts (including this one) this weekend, saving us from the banging-head-against-the-wall feeling from CmdrTaco (don't get me wrong, he is good, but a whole weekend of him???)...
Thankyou Michael, may you kick the SPEED but keep the activity. Haleluajh. Amen. Praise the Linus.
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I agree somewhat...
...)
> You're misinterpreting goodwill, which, IIRC, is defined as the difference between the book value of a company's assets and the price paid for it in an acquisition.
(Book value) - (Price Paid) = (Intangable assets).
Yes, intangalbe assets do include brands, but also include discounted future expected returns and sentiment (goodwill), which can be positive.
Take your example of Amazon... amazon has a great brand, but it has that brand because the name (the brand) is associated with quality (amoungst other things), or:
Brand Value = f (goodwill, exposure(advertising),
As you say, a balance sheet may be at book value (could include marked-to-market investments in some cases where book value is hard to determine or non-existent) for a 'fair' value of its physical assets, but this will not be accurate because of misc intangibles...
Sorry, i seem to have gone too off-topic:
yes, this is great, i wish i could pursuade my bank to do the same, but they seem to be of the opinion open source is a security risk (expressed some posts above), and i'm not talking just making their contributions opensource, i mean running anything open source - they consider running LINUX a security risk!
Personally i think their attitude is one of a staid department, indeed they are 'old school' - no young blood, the department does not attract geeks and does not want to, because it'll out them out of a job. Intangible logic...
Has he been on speed sll weedend??? Speed is a bad drug, and in no was do i condone it's use (nor do i condone P2P piracy, though large beowolf clusters can be positive in some instances).... But may i take this opportunity to thank you michael for the fine posts (including this one) this weekend, saving us from the banging-head-against-the-wall feeling from CmdrTaco (don't get me wrong, he is good, but a whole weekend of him???)... Thankyou Michael, may you kick the SPEED but keep the activity. Haleluajh. Amen. Praise the Linus.