Goodwill represents a good voice or reputation, that a company gains in the market, that is defined as a business-based advantage and reputation as a probability that all customers will continue to maintain business with the company. In accounting, goodwill represents the difference between the value of the company on the stock market, at a certain time, and its accounting net set of assets. Looking at the International Financial Reporting Standards, the goodwill acquired in the business merging under IFRS 3, p.55, is not amortized after the initial recognition, the acquirer must estimate its acquired goodwill at the cost less accumulated impairment losses. When talking about the Republic of Croatia and the amortization, in the subsequent valuation of goodwill, according to HSFI 2 - Consolidated financial statements; the useful life of the goodwill is limited and therefore it must be amortized during its lifetime. Subsequent calculation according to HSFI 2 is significantly different from IAS 36. According to IAS 36, it may or may not have to lose its value, but according HSFI 2 it has a goodwill duration of 5 years.