Identifiable assets can be quantified, but goodwill cannot. Goodwill is used to cover things like customer loyalty, brand reputation, and other assets that can’t be assigned a clear value.
Goodwill is a type of intangible asset and should normally be listed on the balance sheet as a separate line from other (identifiable) intangible assets. It’s sometimes called an “unidentifiable asset.”
Goodwill cannot exist separately from the business. It can’t be sold or transferred. Its value is based on perceptions of the company, rather than on a fair and objective market value.
When an acquiring company purchases a target company, the value of the identifiable assets is subtracted from the amount paid for the company. The remaining money spent is the worth of the goodwill.