Accountancy, asked by grewalboy2004, 7 months ago

Explain various methods of valuation of goodwill in detail

Answers

Answered by hcps00
1

In the annuity method, goodwill can be calculated by taking average super profit. This particular profit is the value of an annuity over a certain number of years. Computation of the present value of this annuity is done by discounting it at the given rate of interest, i.e. on the normal rate of return.

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