Goodwill:-definition, classification and valuation
▶ here is the information that how can we identify the goodwill and how we can compute it's value by different method. what is goodwill? basic introduction and it's types. definition:- goodwill is the value of reputation of a firm in respect of profits expected in future over and above the normal rate of profit. In simpler terms, goodwill is nothing more than the probability that old customer will resort to old place again and again. the capacity of a business to earn super profit in the future is basically what is meant by term goodwill. goodwill is an intangible asset; it cannot be seen; it cannot be felt; it cannot be transported physically. basic introduction with an example; g oodwill represents the value of the acquired business brand, superior customer relations etc. To determine goodwill in a simplistic formula, take the purchase price of a company and subtract the net fair market value of identifiable assets and ...