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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Book value of equity
Dear sir, why book value of equity includes reverse but maket value of equity excludes reserve ?Thank you
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.
Sorry, What is SOFP ?
The Statement of Financial Position (many years ago we used to call it the Balance Sheet, but the name was changed).