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.

On Expansion of operation, there is no need to value of goodwill.

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.