Timeline for Correct calculation for determining real business book value per share?
Current License: CC BY-SA 3.0
4 events
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Feb 9, 2012 at 1:39 | comment | added | Natwar Lath | Well there are many liabilities which is not accounted for as a going concern principle. For examples, labour retrenchment compensation which at times can be very huge. In such a situation, closure is made after negotiation with the Union. Similarly there may be unaccounted for Government Dues. There may cost associated with closure and their related liabilities. Dividend (on preference capital) may be outstanding. | |
Feb 8, 2012 at 14:30 | comment | added | Chris W. Rea | +1 for mentioning going concern value vs. realizable value. But, re: "For liabilities, they tend to increase in such situation" ... Why might liabilities increase? | |
Feb 8, 2012 at 14:29 | history | edited | Chris W. Rea | CC BY-SA 3.0 |
added 8 characters in body
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Feb 8, 2012 at 13:59 | history | answered | Natwar Lath | CC BY-SA 3.0 |