Dear Experts,
Plz tell if "Preference Sh. Capital"
is to be taken in calculation of
"Net Worth" (along with Equity Share Capital and Reserves & Surplus)
Abisheik
(Articled Clerk)
(173 Points)
Replied 03 October 2017
Another approach to find out net worth of an entity is Total Assets minus Total Liabilities.
And in the above mentioned approach you'll get a figure which will include the company's preference share capital and thus it is clearly evident you should include preference share capital also if you follow share holders fund approach which you have adopted.
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