Capital employed
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
19 November 2011
Sir i Have doubt regarding treatment of goodwill already exiting in balance sheet at the date of computing capital employed. Here goodwill because of cost of control. will it be subtracted in computing the capital employed
CA PARAS BAFNA
(Expert)
22 November 2011
In case the enterprise has paid the amount of goodwill and due to that it is shown as asset then it will form part of the capital employed. Otherwise, goodwill , being an intangible asset, should be excluded.
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