net worth of a company
This query is : Resolved
22 November 2007
What do you mean by 'net worth of a company' ? Is it includes only equity share capital or preference share capital also.
22 November 2007
Though Preference share capital is owed by the company to its holders on its liquidation, it also forms part of the Capital structure.
Hence Networth = Equity Share Capital +
PReference Share Capital + Free Reserves . This is Liability side approach. In the Asset side approach it is = Fixed Assets ( NET BLOCK) + Working Capital
Hence Networth = Equity Share Capital +
PReference Share Capital + Free Reserves . This is Liability side approach. In the Asset side approach it is = Fixed Assets ( NET BLOCK) + Working Capital
22 November 2007
PREF. SHARES WITH REDEMPTION PERIOD BEYOND 12 YEARS ARE TREATED AS DEBT.
OTHERWISE IT IS TREATED AS EQUITY.
EQUITY /PREF. SHARE CAPITAL + FREE RESERVES- MISC. EXP. TO THE EXTENT NOT WRITTEN OFF = NETWORTH.
R.V.RAO
OTHERWISE IT IS TREATED AS EQUITY.
EQUITY /PREF. SHARE CAPITAL + FREE RESERVES- MISC. EXP. TO THE EXTENT NOT WRITTEN OFF = NETWORTH.
R.V.RAO
Message likes :
1 times
22 November 2007
Net Worth from Equity Shareholders = Equity + Reserves - Miscellaneous Expenditure.
04 February 2010
Please advise whether Revaluation reserve will be taken in calculating net worth of a company or not
Thanks
Thanks
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
- Treatment of Pension ?annuity returns on PMVY
- Soyabean hsn code and gst rate
- ITR filing- non tax audit cases- Asstt.Year 2026-2027
- TAN for Partnership
- Last year TDS Claim
- CA IPCC Registeration in 2012, Is my registration Active or Expired
- TDS related Query_Liquidated Damages
- What is provisional receipt number for generation of form 16A
- NON- SUBMISSION OF LLP FORM 3
- Long Term Service award taxability in hands of company
- Form 27Q Correction statement taking too long to update on IT Portal
- ITR selection for salaries and capital gain less than L
- Showing Gift from relative in ITR for this year
- Gst invoice numbering and delivery challan numbering
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Small dealers gst returns filing
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
