NET WORTH
This query is : Resolved
11 February 2010
WHAT IS THE TRUE MEANING OF NET WORTH? IF A COMPANIES INVESTMENT'S MARKET VALUE IS HIGHER THAN ITS BOOK VALUE THEN DO WE HAVE TO CONSIDER IT IN CALCULATING NET WORTH? AND IF A COMPANIES DEPRECIATED VALUE OF FIXED ASSETS IS LOWER THAN THE BOOK VALUE OF FIXED ASSET THEN DO WE HAVE TO CONSIDER IT IN CALCULATING NET WORTH? PLZ HELP........
11 February 2010
Dear swati
Net worth = Total asset - total liabilities except share capital and debenture.
Hence relating to your question if company invest in shares you have to see AS 13 accounting for investment and value investment accordingly and it definately included in net worth.
Relating to your fixed assets it also includes in net worth and also you have to see AS 10 for valuation of fixed assets
Net worth = Total asset - total liabilities except share capital and debenture.
Hence relating to your question if company invest in shares you have to see AS 13 accounting for investment and value investment accordingly and it definately included in net worth.
Relating to your fixed assets it also includes in net worth and also you have to see AS 10 for valuation of fixed assets
12 February 2010
Net worth =
Total asset - total liabilities-fictitious assets
or
Sum of share capital and reserves less miscellaneous expenditure.
Only the figures considered in the Financial Statements are taken to decide NET WORTH.
How these figures have been decided; is a matter of finalisation of books by the Management and according reported by the Auditors in their Audit Report.
Total asset - total liabilities-fictitious assets
or
Sum of share capital and reserves less miscellaneous expenditure.
Only the figures considered in the Financial Statements are taken to decide NET WORTH.
How these figures have been decided; is a matter of finalisation of books by the Management and according reported by the Auditors in their Audit Report.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- SEC 54 OF IT ACT
- Where to show the RCM on Rent paid to unregistered landlord
- CPC Processing IT Return for AY 2023-24 without recognizing the Taxation Option under New Regime
- Form 26QB for TDS on property
- Is Aadhar PAN linking required for opening bank account?
- TDS NUMBER SURRENDER
- Whether still royalty
- BLOCKED-INELIGIBLE GST CREDIT
- Amendment of September 2021 Invoice
- Payable outstanding for years disallowance
- Strategic Performance Management and Business Valuation
- Appeals vs Writ court -certain doubt
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding Resignation by Auditor from Pvt. Ltd.
Trending Online Classes
-
Excel Mastery Program
CA Rishabh Pugalia
CAclubindia
