أنشئ حسابًا أو سجّل الدخول للانضمام إلى مجتمعك المهني.
There are three methods of valuation of goodwill of the firm;
1. Average Profits Method
2. Super Profits Method
3. Capitalisation Method
One more method is the super profits method.
In this method excess of actual profits over average profits are calculated to get the Super Profits.Then the valuation of goodwill is done by multiplying super profits with agreed nuber of years usually 3-5 years.
