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What is valuation of goodwill

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What is valuation of goodwill

Posted by Hrithik Kumar Singh 5 years, 9 months ago

ICSE & ISC > Class 12 > Accountancy

1 answers

Yogita Ingle 5 years, 9 months ago

It is very difficult to assess the value of goodwill, as it is an intangible asset. In case of sale of a business, its value depends on the mutual agreement between the seller and the purchaser of the business. Usually, there are three methods of valuing goodwill:
1. average profit method
2. Super profit method
3. Capitalization method

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