Suneel Kumar (Chartered Accountant) (24 Points)
05 March 2012During valuation of shares of a Company, under Net Asset method, whether Goodwill has to be considered or not? This goodwill is a resultant amount on account of Demerger.
Vaishali Bopardikar
(CA final passed)
(109 Points)
Replied 05 March 2012
If it is purchsed goodwiil then it should be considered for valuation purpose.
vinkle
(article)
(31 Points)
Replied 26 March 2012
lovely
(B.Com)
(25 Points)
Replied 14 November 2012
Yes, preference share capital is deducted from net assets in the net asset method because it is a potential liability for the business.
And for ascertaining the value of a share, it should represent the true "net worth" of the business
"Live Course on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"
CAclubindia
