24 July 2018
Hey my client has Securities premium(on account of amalgamation reserve). I have to calculate networth of my client for the purpose of applicability of Ind AS. Do we require to include securities premium created on account of amalgamation reserve for calculation of Networth under clause 57 of section 2 of Companies Act.
Reference:- Section 2 of Companies Act 2013--- Clause (57) “net worth” means the aggregate value of the paid-up share capital and all reserves created out of the profits and securities premium account, after deducting the aggregate value of the accumulated losses, deferred expenditure and miscellaneous expenditure not written off, as per the audited balance sheet, but does not include reserves created out of revaluation of assets, write-back of depreciation and amalgamation.
25 July 2018
As per section 2(57) of the Companies Act 2013, Net worth include , the aggregate value of paid up share capital, free reserves and securities premium amount, credit and debit balance of PNL after deducting all miscellaneous expenditures, deferred revenue expenditure but does not include reserves created on revaluation of assets or on amalgamation
20 August 2018
This is what i referred in my query. Can you please clear whether Securities premium created on account of amalgamation shall be excluded or not for Net worth calculation?
CAclubindia
