jbahs, licences, goodwill, in this instance it's actually the...

jbahs, licences, goodwill, in this instance it's actually the same thing, just some call it licences because its easier to understand. You buy a childcare centre you pay for something. Some will argue you pay for a licence fee, others call it goodwill. Have seen plenty of Business sale contracts for childcare centres in my time. Mostly its called goodwill on the contract. I'm happy to go with licences as you call it. My point is it's a intangible asset and it is actually worth something. Anyone who reads ABC's Balance Sheet and says you exclude the intangibles, is saying you shouldn't pay anything for a leasehold childcare centre.