Festive Savings Are Here. Get 10% OFF on All CCI Pro Plans. Subscribe Now!

Goodwill hunting

755 views

Save Share

Yasaswi Gomes new

Finance

3340 Points Posted on 09 November 2022

Ive had this doubt ever since I graduated in Master. Goodwill can be created based on simple profit method and super profit method. Is this for partnerships or companies? Which AS covers this please?

Txs

Ive migrated to Indas and no need for me to value AS goodwill.

Replies (4)

Quick Summary

This discussion clarifies the application of goodwill valuation methods under Indian Accounting Standards (AS) and Indian Accounting Standards (Ind AS). While older AS standards, particularly AS 26, don't explicitly detail profit or super profit methods, Ind AS 103 focuses solely on goodwill arising from business acquisitions. The consensus is that AS 26 applies to partnerships, and Ind AS 103 to companies, with specific guidance found in these respective standards.

prasad Nilugal

GST Practitioner & Accounts

8998 Points Posted on 09 November 2022

Please refer IND AS 103 for Goodwill.

Yasaswi Gomes new

Finance

3340 Points Posted on 09 November 2022

Isnt there anything about super profit or average profit method in AS stabdards. That must have been written somewhere. Besides Ive already read IndAS and Goodwill treatment from it.

prasad Nilugal

GST Practitioner & Accounts

8998 Points Posted on 09 November 2022

For partnership ship firm AS applicable and for Companies INDAS applicable, so check both AS 26 and IND AS 103 .

yasaswi gomes

My grammar is 💯 good I

5110 Points Posted on 10 November 2022

I have gone through AS26 and no mention about Super profit method of goodwill valuation. Indas has only one goodwill which arises only through acquisition.