Inherent goodwill refers to the non-quantifiable value a business possesses, often through reputation, customer loyalty, and other intangible factors, that is organically developed over time.
Internally generated goodwill, also known as inherent or non-purchased goodwill, refers to the presumed value present in an existing business that has not been evidenced by a purchase transaction. According to Section 18 of the Financial Reporting Standard applicable in the UK and Republic of Ireland, and International Accounting Standard 38, such goodwill should not be recognized on the balance sheet.
