03 October 2014
I think you are referring to goodwill to be recognized in the books of account.
Look its simple some business have reputation in the market they have an added advantage of their name thats goodwill, now if such a businessman sell his business it would be obiviously charge higher price then the normal selling price, such a difference of higher price is recognized by the buyer as goodwill in his books.
CAclubindia
