Super profit
bsai partish (166 Points)
12 August 2020
what is the concept behind super profit method and capitalisation of super profit method?
2 Replies
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 12 August 2020
https://www.caclubindia.com/experts/valuation-of-goodwill-569600.asp
Super profit method calculates goodwill. Capitalised method calculates goodwill using either capitalising super profits or normal average profits. The rationale behind this is not published.
Sanjiv Rajpoot
(3430 Points)
Replied 13 August 2020
Example for super profit supppse that A and B both having same knowledge but A having CA degree therefore A earn more due to having degree .....
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