write the name of any two methods of valuation of goodwill on the basis of super profit
Answers
Answered by
1
The valuation of goodwill depends upon assumptions made by the valuer. Methods to be adopted in valuation of goodwill would depend on circumstances of each case and is often based on the customs of the trade.
The various methods that can be adopted for valuation of goodwill are follows:
1. Average Profit Method
ADVERTISEMENTS:
2. Super Profit Method
3. Capitalization Method
4. Annuity Method.
1. Average Profit Method:
Under this method the value of Goodwill is calculated by multiplying the Average Future profit by a certain number of year’s purchase.
The various methods that can be adopted for valuation of goodwill are follows:
1. Average Profit Method
ADVERTISEMENTS:
2. Super Profit Method
3. Capitalization Method
4. Annuity Method.
1. Average Profit Method:
Under this method the value of Goodwill is calculated by multiplying the Average Future profit by a certain number of year’s purchase.
Answered by
0
It is used to Make films
It is used in business
Similar questions