Net worth


This query is : Resolved 

25 April 2010 I understand as :

Share Capital + Reserv & Surplus - Misc. Assets.

Share Captal include - Share of any type
+ debenture

Reserve include - General Reserve + Revaluation Reserve etc.

Further Any Intengible Assets we have to deduct for calculating Net Worth?


25 April 2010 Another way

Equity capital+Reserves&Surplus-P/L-Fictitious assets

could also include pref.capital

i think networth means money belonging to equity shareholders and include reserves net of fictitious assets awaiting write off.(shareholders funds)

your formula is much closer to capital employed, which includes loan funds/long term debt capital.



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