Question

What is meant by the ‘full goodwill’ method?

Answer 1

Goodwill is the contrast between the consideration paid and the purchaser’s share of the net resources procured, Goodwill can likewise be estimated on a ‘full altruism’ premise, which implies that altruism is perceived for the non-controlling interest in an auxiliary just as the controlling interest.

Also see:

• MCQs on Goodwill
• Methods of Valuation of Goodwill
• Treatment of Goodwill

Stay tuned to BYJU’S to learn similar Commerce Questions.