The evaluation of freelance practices, such as medical practices, architecture firms or law firms, remains insufficiently defined in current standards such as IDW S1 or IFRS. However, the Federal Court of Justice has developed clear guidelines for evaluating goodwill in such freelance practices.
The evaluation of a freelance practice is insufficiently codified by the standard-setters. In IDW S1 or even under IFRS, these are not relevant measurement subjects. However, the evaluation of a medical practice, an architecture firm or a law or tax office must be prepared regularly by an expert opinion or tax advisor, as it is required by the parties, in particular in the event of acquisitions or in the event of family law disputes.
In its judgment of February 9, 2011, the Federal Court of Justice provided basic guidelines for this: According to this, the goodwill of a freelance practice as an intangible asset must always be included in the compensation of gains and thus in the valuation. When calculating such goodwill, an entrepreneur's wage must be deducted as part of the modified income value method, which is based on the individual circumstances of the owner. The inclusion of goodwill in the compensation of gains does not violate the double exploitation prohibition because it concerns the intangible asset existing on the reporting date, excluding the specific work performed by the owner, while the maintenance claim is based on the owner's work and other investment income. The evaluation of an owners' practice based on the reporting date in terms of profit compensation presupposes that the practice can be used. For this reason, deferred income taxes must be deducted as early as the valuation of these final assets based on the reporting date, regardless of whether a sale is actually intended.