1.0 Part 1: How Goodwill arises and the definition of Goodwill 2.0 Part 2: Factors affecting Goodwill & Various Method of Goodwill Valuation 3.0 Part 3: Valuation of Goodwill On Entry Of New Partner or Retirement of Old Partner 4.0 Part 4: Valuation of Goodwill by the Arbitrary Assessment Method 5.0 Part 5: Valuation Of … Read more
This Part 5 looks at the valuation of goodwill using the capitalization of expected future net profits. Situation where Capitalization of Expected Future Net Profits is viable when there are clear steps that the following can be undertaken: Step 1: to ascertain the average future net profit that is expected to be earned. The need … Read more
In Part 2, we understand the various methods of valuing goodwill. This article deals with one of the normal way of computing or valuing goodwill particularly in a partnership whether at the time of a new partner, or the retiring or death of an old partner. Goodwill Valuation: Average annual net profit x an agreed … Read more
NATIONAL INCOME ACCOUNTING 1.0 National Income And Its Importance 2.0 What is Gross Domestic Product(GDP) 3.0 Important concepts related to National Income Accounting 4.0 The uses of National Income Estimates 5.0 Methods Of Measurement of National Income 6.0 Limitations/challenges/problems in the measurement of the National Incomes
Whilst measuring National Income, we need to be aware of some of the following limitations, challenges, problems which are tabulated below: National Income measures domestic economic performance, NOT social welfare, but there should be a strong positive correlation. National Income understates social welfare-non-market transactions like home-makers service and do-it-yourself projects are not counted National Income … Read more
National Income Accounting cannot be underestimated as it has many major uses. Below tabulates the major uses of National Income Estimates: To measure a country’s growth rate Measure the standard of living, usually high national income indicates high standard of living National Planning-national income figures can assist in future economic planning Indicate changes in income … Read more
National income, GNP-the sum of all income in the country derived from providing factors of production in the country or overseas, income received by Malaysian in Malaysia and overseas Domestic income GDP-income earned/rewards to the factors of production within a country Market price-price that consumer have to pay to get the product, thus it includes … Read more
Gross Domestic Product (GDP) Is the total market value of all final goods and services produced in a country in one year It is measure in terms of monetary value Only final product is being counted so as to avoid double counting GDP is a key variable to economic performance because job opportunities and income … Read more
National Income is important in macroeconomic measurement because: · It measures the level of economic production · It explain immediate causes of that level of production · It compares economic condition over tim · It provides a basis for formulation and application of appropriate public policies in order to improve economic performance Click here … Read more