How to compute goodwill in case of J.V. as per AS-27?
ca student (1) (26 Points)
15 October 2009How to compute goodwill in case of J.V. as per AS-27?
Varun Malhotra
(Chartered Accountant)
(207 Points)
Replied 05 November 2009
Method of calculation of goodwill remains same in case of JV except that you need to calculate the net assets of JV taking into account your proportionate share in that JV.
In case of 50:50 JV, Goodwill will be calculated as follows:
Purchase consideration xxxxx (A)
50% of net assets of JV xxxxx (B)
Goodwill xx (A-B)
Varun Malhotra
(Chartered Accountant)
(207 Points)
Replied 08 November 2009
yes dear i m pretty sure
CA. Rishabh Mittal
(CA in Practice)
(1077 Points)
Replied 29 November 2009
Yeah, above method is correct one
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