20 October 2013
worth means equity . equity is defined as residual interest in the assets of the enterprise after deducting all its liabilities . thus , equity is the excess of aggregate assets of an enterprise over its aggregate liabilities . It is calculated as Fixed assets + investments + current assets and loans and advances +deferred tax asset- all outside liabilities including deferred tax liability OR Share Capital + Reserves and Surplus - Miscellaneous Expenditure ( to the extent not written off ) deferred tax liability/asset is a liability which arise in the current period due to timing difference and will reverse in future . therefore the same is required to be considered while calculating Net Worth .
21 October 2013
depending upon purpose for calculating net worth, revaluation reserves may be excluded for arrive at actual net worth on account of business operations.
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