Longuemart Accounting


When an entrepreneur decides to cease his activity and to sell his business, he must evaluate his goodwill to sell it. For best accountancy training Best school of accountancy In Lahore. This price is the result of an agreement negotiated between the seller and the future purchaser. The determination of this price depends on several factors that must be taken into account at the time of the evaluation.
Estimate Tangible Assets
In order to evaluate a goodwill, the tangible assets of the activity  must first be taken into account . Tangible assets include, in particular, customers, which are valued by turnover or profit, lease rights, which take into account the amount of rent and the location of premises, signs, patents or trademarks of manufacture. All these elements are carefully listed and taken into account in the valuation of goodwill.
Estimate fixed assets
In order to evaluate goodwill, account must also be taken of what are called tangible fixed assets. We are talking here about the equipment or tools that are part of the business and that are therefore sold with the trade fund. The market value of the equipment and its condition must be taken into account.
Estimate current assets

Finally, as part of the evaluation of goodwill, it is essential to take into account the current assets, that is to say the stock of goods. It is a question of estimating precisely the importance of the stock sold, as well as the speed of rotation of the latter: the more the goods flow quickly, the more they cost dear to the redemption! If the stock is too large for the in-depth study of the activity, a discount may be applied at the time of the sale of the activity.

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