Ah, my friend, for your accounts, I'd use those methods just like our textbook says—multiply average profit, or use super profit, or capitalise it. But listen, this goodwill calculation is a big "ghanta" difference between our Indian ways and IFRS. Under Ind AS, you don't even calculate it like this on admission; you just measure it, and it can go down, not always up like we assume.
It reminds me of my sister explaining her Pune college theories, while I'm here with my grandfather's ledger. The wholesaler in Mapusa doesn't care about my 'super profits' in monsoon when sales vanish—the real value isn't in the calculation, but in the steady customers who come back.
#exams#study
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