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 |
What is the Basics of Bank Reconcialiation ?
being a b.sc(biotechnology) student, am i eligible to work in accounting sector. If yes what all i need to do.???
If We Purchase Service Of Bl Fees; Is It Necessary To Make Entry As XYZ Co A/c. Dr To BL Fees A/c. Or Just To Make Entry As XYZ Co A/c. Dr To Purchase A/c. Is It The Wrong In Audit Or Any Gen Check Of Entries.
what is tribal area allowance means
0 Answers Chartered Accountant,
my company taken a hdfc car loan rs.355493/= but bank received only 347345/= .after received the amount company purchase the car. after that regular emi paid to hdfc bank.
can any accountant forward format of daily or monthly mis format for accounts and finance dept!!
In Individual Accounting Capital comes under which head?
Hi, we are not a VAT register and raised not VAT bill to company for signage material. they are deducting WCT @4%, can anybody help me why they are deducting WCT while i am not a VAT register vendor, as i do not cross threshold limit.
I purchased a machine and finance it by bank with the amount 1900000 and bank apply the finance charge 440000 for 3 years finance how to pass this entry still machine value is 2200000 is finance charge is interest (indirect exp.) pls help me.
WHAT IS CRR, REPORATE, REVERSE REPO RATE
What a deferred asset is and give an example?
In which expense we book the expense related to certification of ISO 9001 certificate & consultant fee.