Goodwill valuation query

​

​Dear Members please clarify me regarding he following,

As per AS-26, Internally generated goodwill is not to be recognized, however purchased goodwill is shown/ recognised in the books, hence while solving ” Valuation of Goodwill” problems the purchased goodwill will be considered while computing Average Capital Employed.

 But,

 If purchased goodwill already appearing in the Balance Sheet is to be revalued/ revised whether such purchased goodwill should be considered while computing Average Capital Employed

  1. When the opening capital employed is given including the amount of purchased goodwill

 

  1. When the opening capital employed does not include the amount of purchased goodwill

Regards 

Replies (2)
For valuation of goodwill A.S. is not followed
Purchase Goodwill is always a part of net asset calculation, unless until otherwise specified. If it is not considered for calculation of capital employed surely it is specified.

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