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Accounting valuation

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(Querist)
10 March 2014 What is the basis of:

-average profit
-super profit
-capitalisation method

in computing goodwill? Is it still used up to this date in India and other countries?

What is the basis of these formula? How were these formula derived? Do you have any brief history about the subject matter?
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CA Parul Saxena

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CA Parul Saxena (Expert)
10 March 2014 This valuation is done in the case of goodwill valuation where one company take over other
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Aliah Magumpara

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Aliah Magumpara (Querist)
10 March 2014 I'm sorry but I mean, what is the basis of these formula? How were these formula derived? Do you have any brief history about the subject matter?
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