Agenda What is goodwill? Accounting treatment for goodwill Tax treatment for goodwill. Is goodwill subject to VAT? Several issues around goodwill. QR Ee PPWhat is goodwill? Goodwill represents the payment made by the acquirer for the economic benefits expected to result from the synergy of the assets or business acquired. on eon)Accounting treatment for goodwill. Goodwill generally arises in an acquisition, where the acquirer takes control over the net assets and operation of the target. ‘The acquisition can be undertaken in one of the following ways: + Taking over the net assets and operations of the targets (business + Taking over the shares in the targets (shares acquisition). Goodwill is recognized as intangible asset. PSAK 22 — Business Combination