Issue of shares - revalue

Like partnership firm when company issue share capital does they revalue their assets and liabilities??
Replies (3)
Quick Summary
When a company issues share capital, revaluing its assets and liabilities is not a mandatory requirement. This decision is influenced by the company's accounting policies, applicable accounting standards, and its specific situation. While not compulsory, some companies may opt to revalue their assets and liabilities to reflect market changes or other value-affecting factors. This contrasts with partnerships, where revaluation might be more common under certain circumstances.

Revaluing assets and liabilities is not mandatory when a company issues share capital. It depends on the company's accounting policies, the requirements of the relevant accounting standards, and the specific circumstances of the company. Some companies may choose to revalue their assets and liabilities periodically to reflect changes in market conditions or other factors that may affect their value.

It is not mandatory but optional.
So why we do revaluation in case of partnership

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register