Cigno (Sept/Dec 15)

This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.

Viewing 2 posts - 1 through 2 (of 2 total)

Author

Posts
May 26, 2019 at 2:38 am #517349
bigty
Member
- Topics: 11
- Replies: 14
Good day

What’s the reason for excluding reserves when calculating total value to be paid to Anatra ?
May 26, 2019 at 10:51 am #517385
John Moffat
Keymaster
- Topics: 57
- Replies: 54859
The 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.
Author

Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.