Merger reserve and Net assets: Difference between pages

Revision as of 22:14, 26 May 2020

Financial reporting.

Net assets are equal to Total assets LESS Total liabilities.

Example: net assets calculation

Other assets are 70.

Cash is 30.

Total assets = Other assets + Cash = 70 + 30

Total assets = 100

Debt is (40)

Other liabilities are (10)

Total liabilities = Debt + Other liabilities = (40) + (10)

Total liabilities = (50)

Total assets - Total liabilities = 100 - 50

Net assets = 50

Net assets are also equal to the book value of equity, also known as shareholders' funds.

@@ Line 1: / Line 1: @@
-An accounting reserve which arises in group accounts on the application of Merger accounting to a business combination.
+''Financial reporting.''
+Net assets are equal to Total assets LESS Total liabilities.
+:<span style="color:#4B0082">'''''Example: net assets calculation'''''</span>
+:Other assets are 70.
+:Cash is 30.
+: Total assets = Other assets + Cash = 70 + 30
+:Total assets    =        '''100'''
+:Debt is (40)
+:Other liabilities are (10)
+:Total liabilities = Debt + Other liabilities = (40) + (10)
+:Total liabilities   =      '''(50)'''
+:Total assets - Total liabilities = 100 - 50
+:Net assets       =         '''50'''
+Net assets are also equal to the book value of equity, also known as shareholders' funds.
 == See also ==
+* [[Assets]]
+* [[Equity]]
+* [[Financial reporting]]
+* [[Goodwill]]
 * [[Group accounts]]
-* [[Merger accounting]]
+* [[Liabilities]]
-* [[Reserves]]
+* [[Minority interest]]
+* [[Net worth]]
+* [[Non-controlling interest]]
+* [[Return on assets]]
+* [[Return on net assets]]
+[[Category:Accounting,_tax_and_regulation]]