For 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?
For 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?
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..
ashish you are right...
Do we value goodwill for valuation of shares ?
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