why is the value of goodwill determined when a firm can be reconstituted?
Dear Student
During reconstitution of a firm goodwill is calculated so as to compensate the sacrificing partners who had sacrificed their share of profit for the new/upcoming partner as the old partners are sacrificing their running, well established business share.
Hence value of goodwill is determined when a firm is reconstituted.
Regards
During reconstitution of a firm goodwill is calculated so as to compensate the sacrificing partners who had sacrificed their share of profit for the new/upcoming partner as the old partners are sacrificing their running, well established business share.
Hence value of goodwill is determined when a firm is reconstituted.
Regards