given me formula to calculate goodwill
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Under this method, Goodwill is equal to the average profits for a set time period, multiplied by the number of years. This is the simplest and the most common method to calculate goodwill. To summarize the formula: Goodwill = Average Profits X Number of Years.
How is goodwill calculated?
The goodwill calculation method is represented as, Goodwill Formula = Consideration paid + Fair value of non-controlling interests + Fair value of equity previous interests – Fair value of net assets recognized.
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