Inclusion of goodwill in comp. of closing capital employed?

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Article Trainee-CA Final
857 Points Posted on 22 July 2015

Hi All

          For Valuation of goodwill, few problems in MP.Vijaykumar's book includes value of purchased goodwill in computation of closing capital employed while few others do not, Should the value of purchased goodwill be included for computation of closing capital employed or not?

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On 22 July 2015 at 20:04 Report
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Accountant
357 Points Posted on 22 July 2015
You have to calculate revised value of goodwill. So ignore old value of goodwill i.e. book value of goodwill in balance sheet.
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On 22 July 2015 at 20:13

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