Which of the following is NOT one of the recognized methods for the valuation of goodwill?
- AAverage profit method
- BSuper profit method
- CAverage Capitalisation weighted method
- DCapitalisation method
Solution & Step-by-step Explanation
Standard methods of valuation of goodwill are:Average Profit Method (Simple/Weighted)Super Profit MethodCapitalisation Method (Capitalisation of Average Profit / Capitalisation of Super Profit)There is no standard terminology or method known as the "Average Capitalisation weighted method".