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G/w valuation query

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shreyans jain

ABC

159 Points Posted on 12 June 2013

Hi,

While calculating FMP some books have taken the profit for the year since the data is given, while in some books the y have ignored the first years profit stating that we cant compare those profits from the earlier years and average has taken accordingly.

Can anyone let me know which one is correct??

TIA

Replies (3)

shreyans jain

ABC

159 Points Posted on 12 June 2013

Are Bhaiyo help kardo Abhi to padna start kara hai aur NOV mein attempt hain...

shreyans jain

ABC

159 Points Posted on 13 June 2013

Are Bhaiyo help kardo Abhi to padna start

kara hai aur NOV mein attempt hain...

CA Prateek Garg

CA in Practice

1113 Points Posted on 18 June 2013

To Compute the FMP all the profits of past year should be comparable. if profit of any year is not comparable with the profits of other years then do following -

Make them comparable, by eliminating the Extraordinory items or other differeances
if information is not avilable to make the profit comparable then ignore that year in calculating FMP.