Electronic Cigarettes International Group Ltd fka ECIGQ

[ppnlf]

Goodwill in their accounts (as is normal practise) is the difference between the price paid for the businesses acquired and the book value of the underlying assets acquired.
A bit like market capitalisation is usually much higher than the underlying net asset value. This reflects the expectation of management of monetising this into future earnings.
It gets written off to P/L over time.

Note 13 to the 10Q sets this out together with management's view of the impairment of goodwill.

http://irdirect.net/filings/xbrl/viewer/1398702/000135448814005973/18

Whether the amount is right or wrong is a matter of judgement, but the way this figure is arrived at will have been reviewed by the auditors for correctness of calculation (not judgement which is management's ) before being filed.