Financial Terms


This query is : Resolved 

(Querist)
26 November 2008 Please Define The following terms:-
Book Value
Net Asset Value
Net Worth

How we treat Preference Shares & Some reserves like Capital Redemption Reserve, Amalagamation Reserve, Share Premium A/c for calculation of the above?

26 November 2008 book value means values of asset an liabilities as recorded in the books of accounts.
Net Asset value is arrived as from deducting the tottal asset liabilities payable. Net asset value is Asset- liabilities.

Networth is the sum of paid up capital and free reserve.

Nazir (Expert)
26 November 2008 while calculating book value or net asset value you dont need to consider free reserves while calculating for net worth you need to consider those...

26 November 2008 Ca. Vivek is correct. However, both are used interchangeably and the value remains the same.


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