BlackRock Raps Top Glove Board

In an age of activist investors, companies must be seen to be ethical, responsible, and advocate sustainability.  Just as there is goodwill, there is also negative goodwill.  Negative goodwill, along with goodwill, are accounting concepts that undertake the challenge of quantifying the value of intangible assets.  This includes the company’s reputation, its patents, customer base, and licenses.  In the majority of acquisitions, transactions involve goodwill, where buyers pay a sum greater than the value of the selling company's tangible assets. But in rarer cases, negative goodwill occurs, where the value of the intangible assets must be recorded as a gain on the buyer's income statement.  These are considerations for investors such as BlackRock.