going concern basis

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December 1, 2014 at 4:37 pm #215231
jess
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if a division sell off as going concern, we use book value or market value? other than going concern basis, what other basis available to value a business unit if we want to sell it? when do we use replacement cost?
December 1, 2014 at 8:18 pm #215467
John Moffat
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Book value means nothing (unless the non-current assets were purchased recently).

Replacement cost is only relevant for the purchaser – that is what it would cost them to set up the business themselves (although of course it ignores goodwill).
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