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business valuation.

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › business valuation.

  • This topic has 3 replies, 2 voices, and was last updated 5 years ago by AvatarJohn Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • November 13, 2020 at 8:10 pm #594935
    Avatarabokor
    Participant
    • Topics: 82
    • Replies: 114
    • ☆☆

    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.

    November 14, 2020 at 10:04 am #594969
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54845
    • ☆☆☆☆☆

    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.

    November 14, 2020 at 2:03 pm #595000
    Avatarabokor
    Participant
    • Topics: 82
    • Replies: 114
    • ☆☆

    thanks john, I under stood it

    November 14, 2020 at 3:13 pm #595011
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54845
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘business valuation.’ is closed to new replies.

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