Super profit

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166 Points Posted on 12 August 2020
what is the concept behind super profit method and capitalisation of super profit method?
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On 12 August 2020 at 11:55 Report
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The Super Profit Method is a technique used to calculate the value of goodwill. It's based on the idea that a business can earn profits above the normal rate of return due to certain advantages, like a professional qualification. The Capitalisation of Super Profit Method, or capitalising normal average profits, also aims to determine goodwill by considering these excess earnings.

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My grammar is 💯 good I
7306 Points Posted on 12 August 2020

https://www.caclubindia.com/experts/valuation-of-goodwill-569600.asp

Super profit method calculates goodwill. Capitalised method calculates goodwill using either capitalising super profits or normal average profits. The rationale behind this is not published.

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On 12 August 2020 at 15:26
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CA
3430 Points Posted on 13 August 2020
Example for super profit supppse that A and B both having same knowledge but A having CA degree therefore A earn more due to having degree .....
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On 13 August 2020 at 01:13

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