Prince Asked a Question
January 25, 2021 8:04 pmpts 30 pts
what is the meaning of "no. of year purchase" at the time of valuation of goodwill
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  • Durgesh
    The valuation of goodwill is often based on the customs of the trade and generally calculated as number of year's purchase of average profits or super-profits. ... After calculatin...
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  • Shivam
    it means expectation of purchasing firm to generate same operating profits from the business of vendor firm in future
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  • Rucha rajesh shingvekar thankyou
    see this example
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  • Rucha rajesh shingvekar thankyou
    Number of years' purchase is the number of years' for which the firm will expect to earn the same amount of profit because of the past efforts of the firm after change of ownership
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