Valuation of goodwill

Akhilesh Teri (Student) (102 Points)

29 April 2016  

I have a doubt. While valuing goodwill, I see sometimes we use average capital employed & sometimes closing capital employed. Please explain as to how should we decide if we have to use Average capital employed or closing capital employed other than a case where it is specifically given in the question or a case where opening and closing capitals both are given.