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Goodwill calculation

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11 August 2011 Dear Experts,

Whats exactly no. of years of purchase while calculating Goodwill?

Is it number if years we take to to be able earn current profit?

Regards,
Pooja
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CA. Vikash Dwivedi

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CA. Vikash Dwivedi (Expert)
11 August 2011 number of purchase means the estimated number of years you can earn certain profit by using the same name of the Comapny.
In other words the number of years you will be earning extra profit because of name and reputation of the company.
hope this will answer your query.
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