NW & TNW
This query is : Resolved
14 August 2009
is there any difference between Networth & Tangible Net worth?
Guest
Guest
(Expert)
14 August 2009
Dear Sreekumar
I would like to explain the difference between Networth and Tangible Networth through the following example (a balance sheet of XYZ ltd as on December 31, 2009)
Assets (Rs crore):
Intangible (Copyrights, Patents etc.): 100
Tangible (Plant & Machinery, Building): 300
Liabilities (Rs crore): 250
Equity Capital (Rs Crore): 150
Hence,
Networth= Total Assets - Total Liabilities (at book value)
=> Networth of XYZ Ltd as on December 31, 2009 (Rs crore) = 300-250=150
Whereas, Tangible Networth= Total Assets-Intangible Assets-Total Liabilities
=> Tangible Networth of XYZ Ltd as on December 31, 2009 (Rs crore)= 300-100-250=50
Trust, this assists you.
Best Regards
CA Himanshu Garg
ca.hims@gmail.com
I would like to explain the difference between Networth and Tangible Networth through the following example (a balance sheet of XYZ ltd as on December 31, 2009)
Assets (Rs crore):
Intangible (Copyrights, Patents etc.): 100
Tangible (Plant & Machinery, Building): 300
Liabilities (Rs crore): 250
Equity Capital (Rs Crore): 150
Hence,
Networth= Total Assets - Total Liabilities (at book value)
=> Networth of XYZ Ltd as on December 31, 2009 (Rs crore) = 300-250=150
Whereas, Tangible Networth= Total Assets-Intangible Assets-Total Liabilities
=> Tangible Networth of XYZ Ltd as on December 31, 2009 (Rs crore)= 300-100-250=50
Trust, this assists you.
Best Regards
CA Himanshu Garg
ca.hims@gmail.com
15 August 2009
Can we treat long term borrowinngs as a part of Total Net worth? What are the other items we can add to Total Net Worth?
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