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Hi tutor,
If a question on valuation gives the statement of financial position of the company, which includes intangible assets such as goodwill, and asks for the net replacement asset value, the value of goodwill should be excluded from the calculation, right? Should then patent and copyrights be excluded as well, unless they have a market value attached to them?
If the question asks for net realisable value or net book value, I can simply ignore the intangible assets values right?
Hope to hear from you thanks 🙂All intangibles should be excluded, unless they have a sale value (such as patents) which applies to all types of asset valuations.
If (like goodwill) they are excluded, the you do not include them!
If they have a value then you include them in the total.
OK, the BPP study text was confusing – they subtracted the goodwill from the net asset value without explaining anything, so thought I’d ask, thanks for the help! 🙂
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