[header] How to account for goodwill [title] Recognize the difference between tangible and intangible assets. [step] Goodwill is considered an intangible asset. Unlike tangible assets, which are physical assets such as property, machinery, or vehicles, an intangible asset is an asset that cannot be touched. 
These would traditionally include things like brand names, copyrights, patents, or trademarks. [substeps] From an accounting perspective, both tangible and intangible assets are recorded on the balance sheet, since both types of assets have value.