Shikha Sharma (Chartered Accountant) (311 Points)
06 November 2009For calculating the value of shares under Net Assets Method, how do we treat Share Application Money received. Is it deducted form the Value of Net Assets?
Ashish Ojha
(Chartered Accountant)
(469 Points)
Replied 07 November 2009
It is not Included At all...
Unless company receives minimum subscripttion & allot shares to successful applicants, it doesnt possess any legal claim over the application money.
Thus, we will not include it, or we will deduct it frm assets as it is still a liability..
Namrata
(not as yet)
(40 Points)
Replied 27 November 2009
Do we value goodwill for valuation of shares ?
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