What
is Goodwill?
Goodwill is an intangible
asset and normally calculated at the time of disposal or acquisition of
business. The sources of goodwill may include management skills, place of
business, efficient processes etc. In simple term good will is the price paid
above the fair value of net assets.
At
what time goodwill calculated?
Goodwill calculated at the
time of acquisition. Goodwill may be calculated by adding the non controlling
interest with investment and deducting the fair value of net asset of subsidiary.
How
goodwill calculated in 100% acquisition
In case of 100% acquisition,
Goodwill is calculated by deducting the fair value of net asset from the
investment in subsidiary.
Why
Goodwill calculated?
Good will shows the price
paid over and above the fair value of net assets.
