[Georgie]

Goodwill is like a super-intangible asset--it relates to things that can't be specifically capitalized like a patent or trademark (both intangible assets). its like the aggregate of things such as earnings potential, skill of management, reputation, that you pay a premium for over FMV. i can't specifically explain this one case w/ GM having $32B in Goodwill after a bankruptcy though. it confuses me as well. i'm only familiar with how to treat Goodwill after a purchase and in Consolidations.

we can say that the A=L+E was in balance in previous years with reasonable assurance because of annual audits by the audit firm. otherwise, they would not have received an unqualified opinion on their financials. yes, there was Arthur Anderson and Enron, but i don't think there's possible collusion w/ the audit firm in GM's case.