Good day
What's the reason for excluding reserves when calculating total value to be paid to Anatra ?
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Cigno (Sept/Dec 15)
7y ago#1The share capital plus reserves on the SOFP will never show the true value of the equity of a company. (They are equal to the net assets of the business which are at book values rather than 'true' value.)
The 'true' value of the equity is the PV of the future flows.
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