Published On Nov 4, 2017
Valuation of Goodwill | by CA/CMA Santosh Kumar
Meaning:-
The valuation of goodwill is often based on the customs of the trade and generally calculated as number of year's purchase of average profits or super-profits. ... After calculating average profit, it is multiplied by a number (3 or 5), as agreed. The product will be the value of the goodwill.
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