Welcome to IBankingFAQ

To those of you who are still in the interview process for summer internships, good luck! And my congratulations to those of you who have accepted offers.

I’ve made some changes to the home page of IBankingFAQ (the page you’re on now) so it’s not so static. I intend to use this top section to highlight any changes or updates to the site and other communications to readers.  The old home page is the About page, where you can read about the site.  Below this section is a random FAQ that will change whenever you refresh the page.

You may have noticed a new purple banner at the top of the screen advertising a new self study program that I’ve developed to teach basic financial modeling.  This is something that has been in the works for a while and I’m pretty excited about it.  You can learn more about the Financial Modeling Self Study Program.

As always, I look forward to your comments/suggestions/questions and emails (andrew [at] ibankingfaq.com).

Random FAQ: What is goodwill and how is it calculated?

Goodwill, a type of intangible asset, is created in an acquisition and reflects the value (from an accounting standpoint) of a company that is not attributed to its other assets and liabilities.  Goodwill is calculated by subtracting the target’s book value (written up to fair market value) from the equity purchase price paid for the company.  This equation is sometimes referred to as the “excess purchase price.”  Accounting rules state that goodwill no longer should be amortized each period, but must be tested once per year for impairment.  Absent impairment, goodwill can remain on a company’s balance sheet indefinitely.

View more frequently asked questions about: Mergers and Acquisitions.