Skip to content

Ask the Tutor ACCA FM

business valuation.

MAMr. Aboukar5y ago
Hi john, hope you are doing good. sir, am a bit confused with asset based business valuation. specially how to deal with the intangible assets, i.e. goodwill, under the following circumstances. 1. Book value 2. Net realizable value 3. Replacement value. thanks in advance john.
John MoffatJohn MoffatTutor5y ago#1
Goodwill is only included in book value if it appears on the SOFP (which would only be the case if it was purchased goodwill which is unlikely). It would not be included in replacement value. As far as net realisable value is concerned, it will be included if the question gives a value for it.
MAMr. Aboukar5y ago#2
thanks john, I under stood it
John MoffatJohn MoffatTutor5y ago#3
You are welcome :-)
This topic is locked — no new replies.