Financial management
This query is : Resolved
20 October 2013
how to calculate the net worth of a company?
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 .
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.
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
- House Property Reporting in ITR
- TDS Claim year
- Supply through E-commerce Operators
- Rent lease agreement
- Relief u/s Section 89
- TDS Challan Code
- GST ON DAMAGED GOODS
- Agriculture income or business income
- Is E Way Bill Valid If Transport ID Not Mentioned in PART A But Vehicle details mentioned in PART B
- STCG on ETF gold & silver
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
