Goodwill

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Querist : Anonymous

Querist : Anonymous (Querist)

05 December 2016 Sir, if goodwill is a reputation .. so how we can calculate reputation to money?

Sandeep Dharar

Sandeep Dharar (Expert)
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05 December 2016 Coz in the Balance Sheet the Assets and liabilities are valued in money only. You can't explain ur reputation on paper, other than money(in case of Finance). Suppose u wanna invest in a company, so how the company will present itself in front u so that it will attract more customers(coz the customers have only the financials to judge the company)? So as per the different methods of calculation of goodwill we value the progress of an enterprise in terms of money(by taking profits as base). Hope u get what i explained. Feel free to ask in any doubts.