Spark (NZ) not enthusiastic perhaps, page-60

I think you are looking at things purely as an accountant. But goodwill exists whether it is recorded on the accounts or not. It's an asset that represents the attractive force of a business - usually tied up in its customers, brand, reputation, management skills etc. It is hard to value. According to accounting standards (as I understand them) goodwill can be valued by giving it a value equal to the difference between purchase price and value of tangible assets.