ABSTRACT
The profits method, which is sometimes referred to as the accounts method, the profits test or the receipts and expenditure method, is only used where it is not possible to value by comparison because reliable comparables are not available. This tends to be where some element of monopoly exists. The monopoly could be legal (for example licensing requirements for pubs, or the difficulty in getting planning permission for uses such as bingo halls) or factual, because no competing property is likely to be built, for example isolated trading locations like a book stall in a railway station or a garden centre in the countryside.
