In this article we will discuss about the Super Profits Method for Evaluation of Goodwill along with Solved Illustrations. In this case, the maintainable profits of the firm whose goodwill is for sale are compared with the "normal" profits for the firm, i.e., profits, which would have been earned with the same capital by an average firm. If the estimated [...]
This article throws light upon the top two categories for evaluation of public deposits. The categories are: 1. As a Source of Corporate Finance 2. Investor's Point of View. Category # 1. As a Source of Corporate Finance: Many companies have accepted unsecured deposits from the public in the recent past, in India, mainly to finance their working capital requirements. [...]
This article throws light upon the three parameters for the evaluation of internal control system. The parameters are: 1. Administrative Controls 2. System Development Controls 3. Procedural Controls. Internal Control System Evaluation: Parameter # 1. Administrative Controls: (A) Division of responsibilities—between the sections like: (a) Development, (b) Data preparation, (c) Computer operation, (d) File library, and (c) Control. (B) Control [...]