what is the logic of...
not to show goodwill in BOA...
In case of partnership...
Please explain in detail
2 Replies
CA Raj Doshi
(Practising CA)
(8924 Points)
Replied 27 May 2020
Goodwill is a subjective concept. The value of goodwill varies from one person/valuer to another person/valuer. Goodwill Is different from Recall Value. The Company "Nestle" for example has a good recall value but does not mean it also has goodwill. As per Accounting standards, only purchased goodwill is recorded in the books of accounts as it a financial transaction and not a valuation report just for the sake of measuring goodwill on voluntary basis. Goodwill recorded in BOA is subject to annual impairment testing.
CHAITRI SUDHAKARBHAI KHAROD
(ARTICLE)
(752 Points)
Replied 27 May 2020
Okay....got it...thank you very much sir...
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