The Net Worth Formula / certificate of Sole Proprietorship Firm while applying for business investor in Foreign countries. How to explain the Net worth certificate under which rule, or any prescribed by ICAI or any any recognization.
To explain the visa officials asking under which prescribed rule the certificate net worth of sole proprietorship firm is authorized. What is the correct answer to explain. Urgently Reply Needed
03 January 2015
No such document is available. There is a book on various ACCOUNTING standards. If you wish you can show the same...but specifically for SOLE PROPRIETORSHIP FIRM....nothing specific as such.
Let me share one thing....I have issued few certificates for US visa purposes, and in some US company acquisition cases
But nobody insisted on any such thing. I gave it on my letterhead
05 January 2015
Dont mention any number. Let it be like ...."the net worth is computed in accordance with the generally accepted accounting standards and principles in INDIA."..... One more suggestion is...at the end give the figure in USD at so and so rate...you can take the USD conversion rate from RBI site or LIBOR or MIBOR...and mention the same that so and so exchange rate as depicted by so and so site is applied for in this certificate.
But a person says that If I trace the article on sole proprietorship net worth rule. It's a challenge for Accounts Person so I am worried about this topic.
05 January 2015
No issues.....Canada is on similar lines... In fact little bit softer than US consulate people.
See, let me share this.....I have given such certificates for... US, Canada, UK, Germany, France, Nigeria, Australia...
Net worth given on market value is considered quite positively...
If you want make it a columner statement stating 01. item/ property details 02. book value as on ...say last balance sheet 03. market value as on say 05/01/2015 04. basis adopted for market value 05. MV of the item/property 06. Some people add column for canadian dollar
I normally give a consolidated figure of canadian dollar as per so and so rate at the ending para of certificate
CAclubindia
