RBS attacked on 'goodwill'

ROYAL Bank of Scotland has come under fire for the lack of transparency following its acquisition of ABN Amro.

A report by accountancy analyst Company Reporting criticised the Edinburgh-based bank for justifying the £23.3 billion of goodwill acquired in the £49bn transaction in only one sentence.

Company Reporting, which is also based in the Capital, said: "The disclosure on the nature of the £23.3bn goodwill arising are confined to a single sentence, stating that the goodwill is attributable to cost and revenue synergies and the long-term earnings potential of the acquired businesses."

Goodwill is an intangible asset that reflects a firm's value as a going concern and its ability to generate profit, over and above any intrinsic value.