What is the term for future expected economic benefits from an intangible asset?

The concept of future expected economic benefits from an intangible asset is accurately captured by the term "Goodwill." Goodwill arises during a business acquisition when the purchase price exceeds the fair value of identifiable net assets. It represents intangible factors such as brand reputation, customer loyalty, and intellectual property that contribute to the economic benefits expected in the future.

Goodwill is not merely a contingent asset, which refers to potential benefits that may arise depending on future events. In contrast, goodwill represents a recognized value already reflected on the balance sheet as part of the business's worth. It captures the intangible advantages that a business holds over others, essentially tying into the future earnings potential tied to the acquired company's reputation, customer relations, and other non-physical assets.

Investment generally refers to the allocation of resources to generate a return, but it does not specifically describe the benefits derived from intangible assets. Deferred income pertains to revenue received but not yet earned, also not aligning with the concept of anticipated future benefits from an intangible asset.

In summary, goodwill correctly signifies the future expected economic benefits from an intangible asset, encapsulating the various intangible factors inherent in a business's value.