Is Goodwill a Current Asset?

Written by True Tamplin, BSc, CEPF®

Updated on January 02, 2023

No, goodwill is not a current asset. Goodwill is an intangible asset, meaning that it is not associated with a physical item like a building or piece of equipment. Intangible assets are never considered current assets, no matter the period for which they provide economic value. Goodwill specifically is also considered to have an indefinite life, since as of 2001 it no longer needs to be amortized for accounting purposes.

Is Goodwill a Current Asset FAQs

Is goodwill a current asset?

No, goodwill is not a current asset.

What is goodwill in accounting?

Goodwill is an intangible asset, meaning that it is not associated with a physical item like a building or piece of equipment.

Are intangible assets current assets?

Intangible assets are never considered current assets, no matter the period for which they provide economic value.

Why is goodwill always a non-current asset?

Goodwill specifically is also considered to have an indefinite life, since as of 2001 it no longer needs to be amortized for accounting purposes.

About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.