Considering the fact related to valuation of goodwill. Select out of the following, when there is a need for valuation of goodwill arises.

(A) Admission of partner
(B) Expansion of operation
(C) Retirement of partner
(D) Death of a partner
(E) Amalgamation of partnership firms

Choose the correct answer from the options given below :

(A), (C), (D) and (E) only

The correct answer is Option (2) - (A), (C), (D) and (E) only

Goodwill is an intangible asset that represents the excess of the purchase price over the fair value of identifiable net assets acquired in a business combination. Normally, the need for valuation of goodwill arises at the time of sale of a business. But, in the context of a partnership firm it may also arise in the following circumstances:
1. Change in the profit sharing ratio amongst the existing partners;
2. Admission of new partner;
3. Retirement of a partner;
4. Death of a partner
5. Dissolution of a firm involving sale of the business as a going concern.
6. Amalgamation of partnership firms.