01-28-2009, 04:57 PM
Dear friend the goodwill and all other intengible assets shall be amortized at the rate of 10% per year using straight line method
according to section 24(3)of Income tax ordinace. The section 24(3)states that an intengible whose useful life cannot be determined shall be assumed having usefull life o ften years
As for your query is concerned abour the nature of goodwill, the Income Tax Rules 2002 has specified that the Generally Accepted Accounting Principles(GAAP) shall be followed while making accounts. According to Generally Accepted Accounting Principles the Goodwill is intengible assets, so shall be dealt accrdingly.
Awais Aftab
ACMA (Finalis)
according to section 24(3)of Income tax ordinace. The section 24(3)states that an intengible whose useful life cannot be determined shall be assumed having usefull life o ften years
As for your query is concerned abour the nature of goodwill, the Income Tax Rules 2002 has specified that the Generally Accepted Accounting Principles(GAAP) shall be followed while making accounts. According to Generally Accepted Accounting Principles the Goodwill is intengible assets, so shall be dealt accrdingly.
Awais Aftab
ACMA (Finalis)
