Can we show goodwill [intangible asset] in balance sheet ?

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 December 2011 Dear Sir,

Can we show the goodwill as intangible asset of the organisation in the balance sheet ?? and if yes then how to calculate the same ????

Hari Beldona

Hari Beldona (Expert)
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08 December 2011 Yes, there are different methods for valuation of good will
for example 3years purchase of average profits of the past 5 years

Good Will=3x total of past 5 years profit/5

In case of loss it is to be deducted instead of adding
I have explained for understanding purpose only