Goodwill represents the amount paid over and above the fair market value of an asset, a business entity or part ownership of a business entity. Goodwill is an intangible value which arises from elements such as name, reputation, customer loyalty, location, products, and related factors not separately identified and quantified. Goodwill is one of the intangible assets which cannot be valued by itself. It is considered the residual value above the assets fair market value. One of the ways goodwill is measured is by determining the fair market value of the asset and comparing this with the potential transaction price for the asset. The excess of the price over the fair market price constitutes the goodwill. The International Financial Reporting Standards (IFRS) require firms to re-evaluate all recorded goodwill at least once a year and record impairment adjustments if necessary. When the book value of the goodwill is higher than the fair market value, then the goodwill is impaired and the book value adjusted downwards accordingly.