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good will accounting is the concept refers to the value of the intangible asset owned, but his "outstanding value" quantifiable in the business.
When we say that there is a popular facility with certain we are referring to is definitely a competitive advantage or a differential in this area or the reputation of its distinctive from those customers when it referred to the ability of the facility to achieve extraordinary profits in the future and ...
In the case of entry or exit partner we re-evaluate all assets, including goodwill
Value is determined in the following manner:
1-account profits to be achieved in the future, on average = average net assets × average rate of return achieved by the company
2-normal return on invested capital = (average net assets × normal return on the money invested)
3-assessed value of goodwill = (a -2) ×1 / A
1-2 = extraordinary profits
A = the rate of return achieved by the company during the period of production, taking into account the general direction.
Calculation Methods of Fame: -
1-method earnings from previous years
2-way Tbderbah future years
3-purchase a certain number of non-regular average earnings in previous years.
It is worth mentioning that the Goodwill Goodwill is a classification within intangible assets Intangible Assets statement of financial position
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