07-13-2004, 11:14 PM
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1 Does these types of expenses affect the GOODWILL of the business, if yes then how do we calculate it?
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Hello!
Offcourse that type of expenses affect the goodwill of the business. But you donnot need to to calculate the goodwill of a busines in its normal course of trading. The only factor that raises the calculation of goodwill is when the business is being sold. Even then there is no set rule for the calculation of goodwill as it is just a market valuation.
Correct me if i'm wrong.
Regards
Mubeen
Edited by - sniper on Jul 13 2004 62102 PM
1 Does these types of expenses affect the GOODWILL of the business, if yes then how do we calculate it?
<hr height=1 noshade id=quote></BLOCKQUOTE id=quote></font id=quote><font face="Verdana, Tahoma, Arial" size=2 id=quote>
Hello!
Offcourse that type of expenses affect the goodwill of the business. But you donnot need to to calculate the goodwill of a busines in its normal course of trading. The only factor that raises the calculation of goodwill is when the business is being sold. Even then there is no set rule for the calculation of goodwill as it is just a market valuation.
Correct me if i'm wrong.
Regards
Mubeen
Edited by - sniper on Jul 13 2004 62102 PM