Calculation of intrinsic value of shares

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CA Final Student
105 Points Posted on 27 January 2016

Dear friends,

When we calculate intrinsic value of shares, why don't we consider miscellaneous expenses like Preliminary expenses and discount on issue of debentures ?

 

What is the reason for not taking those items in the balance sheet in our intrinsic value calculation ?

 

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On 27 January 2016 at 23:46 Report
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CA Final Student
699 Points Posted on 30 January 2016
When we calculate IV of shares, the basic formula is 'Assets-Liabilities' & resultant we get Net Assets which belong to Equity Shareholders & misc expenses like preliminary expenses & discount on issue of debs etc form part of EQUITY SHARE CAPITAL & not Assets or Liabilities. I hope ur confusion has been resolved.
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On 30 January 2016 at 01:37

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