What distinguishes goodwill from intangible assets?

Goodwill is distinct from intangible assets primarily because it cannot be identified separately from the underlying assets of a business. This characteristic arises during the acquisition of a company, where the purchase price may exceed the fair value of identifiable net assets. This excess represents goodwill, which reflects the value of the company's brand reputation, customer relationships, and other factors that are not explicitly quantifiable.

In contrast, intangible assets, like patents and trademarks, can be distinctly recognized, valued, and recorded on the balance sheet as they arise from identifiable rights or contractual agreements. Thus, the inability to separately identify goodwill from the assets of the acquired company is what clearly differentiates it from other intangible assets, which have a more defined existence.