Valuation of Goodwill and calculation!! question asked in many companies,try to remember the methods..



Valuation of Goodwill and calculation!! question asked in many companies,try to remember the methods..

Answer / bjanmejai

Valuation of Goodwill
1. Super profit Method
2. Capitalization method
Factors for valuing GW
1. FMP
2. CE
3. NRR
Points to be considered while Calculation of FMP
1. Only Profit of those years with normal activity to be considered (years of Abnormal activity excl.)
2. Profits – Operating profits (non-operating items excl but if they are recurring to be incl)
3. Income from Trade Investment only to be considered (NTI not to be considered)
4. Fluctuating Profits – Simple Avg
5. Profits with a trend - Weighted Avg
6. If fixed asset is revalued – ignore p/l on revaluation , if other assets(liab)- consider
7. But consider addl. depn on the revaluation o FA

Is This Answer Correct ?    8 Yes 0 No

Post New Answer

More Accounting General Interview Questions

Please Inform me the actual meaning & rate of C.S.T.,E.S.I.,Gift Tax,Service Tax,Excise duty,Professional Tax & Range of the same,Calculation of P.F. & F.P.F.

2 Answers  


HP EMPLOYYES - If any one in HP company, Please give refernce for attend the Accounting Job in chennai,Bpo- chetpet.If any one Worked there Please,Send mail to me Umaiyo@gmail.com.I have 1 year exp in banking sector, & 8 months exp in accounting in SIEMENS, at present I'm searching for a job.If any person see this mail,Kindly send mail to me. Thank U Friend.

0 Answers   HP,


What is the bank reconciliation and simple explanation of BRS.

10 Answers   CIO Review,


Is it mandatory having Knowledge of auditing to an accountant ?

5 Answers  


what is equity share

3 Answers   Reliance,






How to merge a supplier

0 Answers   Accenture,


How to show Airticket Expense on Company's A/c as Company expense

0 Answers  


what will be the entry of income tax paid in partnership firm.

3 Answers  


What are the reasons which cause pass book of the bank and your bank book not tally?

0 Answers  


what is trial balance? How to prepare trial balance?

2 Answers   Capital IQ,


what do you understand by BRS? why is the reconciliation done?

3 Answers  


Explain what is bank reconciliation?

0 Answers  


Categories