Skip to content

Ask the Tutor ACCA FM

Book value of equity

DDinh5y ago
Dear sir, why book value of equity includes reverse but maket value of equity excludes reserve ?Thank you
John MoffatJohn MoffatTutor5y ago#1
The market value is based on the future expectations of profits. Values in the SOFP are not ever showing the true value. I do explain this in my free lectures.
DDinh5y ago#2
Sorry, What is SOFP ?
John MoffatJohn MoffatTutor5y ago#3
The Statement of Financial Position (many years ago we used to call it the Balance Sheet, but the name was changed).
Sign in to reply to this topic.