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Hi Sir,
In BPP practice and revision kit in a question it said that (The current amount of an entity’s net assets is lower than the entity’s number of shares in issue multiplied by its share price.) Is an indicator of impairment.
Is this true. I see it more as an indicator of revaluation.
Thanks for your time and consideration Sir
Hi,
Where the net assets are greater than the market capitalisation then this is an impairment indicator. In the instance above then it doesn’t look correct.
Thanks
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