Accounting treatment of goodwill: revenue recognition method, accounting treatment method of enterprise income tax, inventory valuation method, accounting treatment method of bad debt loss, depreciation method of fixed assets, preparation of consolidated accounting statements, accounting treatment method of foreign currency conversion, etc. Different processing methods will affect the consistency and comparability of accounting data, and then affect the use of accounting data.

Goodwill refers to the potential economic value that can bring excess profits to enterprises in the future, or the capitalized value that the expected profitability of enterprises exceeds the normal profitability of identifiable assets. Goodwill is an integral part of the overall value of an enterprise. In business combination, it is the difference between the investment cost of the purchased enterprise and the fair value of the net assets of the merged enterprise.