Sole proprietorship net worth by icai
This query is : Resolved
03 January 2015
Dear Sir,
I would like to know the Sole Proprietorship Net Worth Certificate.
The Formula is authorized by which authority. Any written guide lines to show the authorization of Net Worth Certificate.
Thanks
Mukesh
I would like to know the Sole Proprietorship Net Worth Certificate.
The Formula is authorized by which authority. Any written guide lines to show the authorization of Net Worth Certificate.
Thanks
Mukesh
03 January 2015
As per my view
Net Worth = Prop. Capital + Reserve & Surplus
Or
Total Assets-Total Outside Liabilities
Net Worth = Prop. Capital + Reserve & Surplus
Or
Total Assets-Total Outside Liabilities
03 January 2015
Hello Naveen,
The formula is authorized by which authority for sole proprietorship.
The formula is authorized by which authority for sole proprietorship.
03 January 2015
No any template or format per se is recommended.
But normally people follow the one which is similar to OLD wealth tax statement of return format
Immovable property
Movable Property
Less: Debts
But normally people follow the one which is similar to OLD wealth tax statement of return format
Immovable property
Movable Property
Less: Debts
03 January 2015
Hello Amol,
Is it authorized by ICAI the sole proprietorship Net Worth Formula
Is it authorized by ICAI the sole proprietorship Net Worth Formula
03 January 2015
Dear Amol Sir,
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.
Thanks & Regards
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.
Thanks & Regards
03 January 2015
That is what I am trying to narrate....
01. ICAI has NOT otherwise restricted any member to issue the net worth certificate
02. The format/template may differ from person to person.
03. The one normally in vogue is similar to OLD wealth tax returns.
04. Some CPAs use the words Liquid Assets and Illiquid Assets
Your views please
01. ICAI has NOT otherwise restricted any member to issue the net worth certificate
02. The format/template may differ from person to person.
03. The one normally in vogue is similar to OLD wealth tax returns.
04. Some CPAs use the words Liquid Assets and Illiquid Assets
Your views please
03 January 2015
dear Amol Sir,
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
Thanks & Regards
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
Thanks & Regards
03 January 2015
Dear Amol Sir,
Can I explain any rule prescribed for net worth of sole proprietorship firm.
Thanks & Regards
Can I explain any rule prescribed for net worth of sole proprietorship firm.
Thanks & Regards
03 January 2015
Sure....
Compute the net worth on MARKET VALUE basis. (In fact that was the reason I was HINTING to use wealth tax return format)
(If it is a complex issue.....you can select either of Market Value or Replacement Value)
Go one by one through all the items of Assets and Liabilities and arrive at the figure of net worth
Compute the net worth on MARKET VALUE basis. (In fact that was the reason I was HINTING to use wealth tax return format)
(If it is a complex issue.....you can select either of Market Value or Replacement Value)
Go one by one through all the items of Assets and Liabilities and arrive at the figure of net worth
03 January 2015
Dear Amol Sir,
Any Rule or prescribed regulations in ICAI for sole proprietorship net worth is available, If available under which rule.
Thanks & Regards
Any Rule or prescribed regulations in ICAI for sole proprietorship net worth is available, If available under which rule.
Thanks & Regards
03 January 2015
Nothing is available EXCEPT ACCOUNTING STANDARDS issued by ICAI
03 January 2015
You are most welcome....
03 January 2015
Dear Amol Sir,
Any written document is available in ICAI accounting standard for Sole Proprietorship Firm Net worth. To show the officials that we follow this rule
Thanks & Regards
Mukesh
Dear Amol Sir,
Any written document is available in ICAI accounting standard for Sole Proprietorship Firm Net worth. To show the officials that we follow this rule
Thanks & Regards
Mukesh
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
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
03 January 2015
Dear Anmol Sir,
This is regarding Investors category Visa
Thanks & Regards
Mukesh
Dear Anmol Sir,
This is regarding Investors category Visa
Thanks & Regards
Mukesh
03 January 2015
No issues... You can very well go ahead...
The consulate officers do recognise our CA letterhead... All the best
The consulate officers do recognise our CA letterhead... All the best
03 January 2015
You are most welcome..
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05 January 2015
Dear Amol Sir,
Which accounting standard no. explains about net worth, As-6, As -10,As-22 like wise.
Thanks & Regards
Mukesh
Which accounting standard no. explains about net worth, As-6, As -10,As-22 like wise.
Thanks & Regards
Mukesh
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.
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.
05 January 2015
ok Thanks Mr Amol Sir,
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.
ok Thanks Mr Amol Sir,
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
U r using it for US investment visa.
And they know this Accounting Language used by CAs. (CPA as they refer it) and are quite confortable with also
So let the person other than US consulate officer search anything and everything..... no issues.
And they know this Accounting Language used by CAs. (CPA as they refer it) and are quite confortable with also
So let the person other than US consulate officer search anything and everything..... no issues.
05 January 2015
Dear Anmol Sir,
For Sole Proprietorship Firm, the net worth certificate is to be issued for the specified firm.
Secondly for the Applicant the net worth is to be issued taking into Individual net worth.
So The Proprietor is having 2-3 different firm, so different firm net worth is to be prepared.
Thanks & Regards
Mukesh
Dear Anmol Sir,
For Sole Proprietorship Firm, the net worth certificate is to be issued for the specified firm.
Secondly for the Applicant the net worth is to be issued taking into Individual net worth.
So The Proprietor is having 2-3 different firm, so different firm net worth is to be prepared.
Thanks & Regards
Mukesh
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
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
05 January 2015
Thanks Mr. Anmol Sir,
Regarding proprietorship firm & individual for the same proprietor ship as I asked , for prop. firm & individual separately Net Worth to be issued.
Thanks Mr. Anmol Sir,
Regarding proprietorship firm & individual for the same proprietor ship as I asked , for prop. firm & individual separately Net Worth to be issued.
05 January 2015
very correct....
Because the propretor may have some assets other than the one mentioned in balance sheet
In fact that is why I said make a columner statement in each case, it gives a good disclosure and also the overlapping is avoided.
Because the propretor may have some assets other than the one mentioned in balance sheet
In fact that is why I said make a columner statement in each case, it gives a good disclosure and also the overlapping is avoided.
05 January 2015
Dear Anmol Sir,
I have to prepare business entity wise net worth first, because Proprietor is having 2-3 firms & Director in Pvt Ltd Co. Partner in Partnership firm,
So separate business entity wise have to prepare net worth certificate.
Where as when the proprietor is having single firm and showing in his personal ITR in that case Individual Net Worth can be prepared.
Dear Anmol Sir,
I have to prepare business entity wise net worth first, because Proprietor is having 2-3 firms & Director in Pvt Ltd Co. Partner in Partnership firm,
So separate business entity wise have to prepare net worth certificate.
Where as when the proprietor is having single firm and showing in his personal ITR in that case Individual Net Worth can be prepared.
05 January 2015
I was about to tell you the same thing...
I enjoyed one work for a partnership firm having 14 partners....and the group was applying for US visa
It really was a good experience....to be done quite coolly and level headed
All the best... Microsoft Excel really comes handy in all such cases.
I enjoyed one work for a partnership firm having 14 partners....and the group was applying for US visa
It really was a good experience....to be done quite coolly and level headed
All the best... Microsoft Excel really comes handy in all such cases.
05 January 2015
Ok. All the best.
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