Difference between revisions of "Net assets"

Revision as of 14:48, 26 May 2020

Financial reporting.

Net assets are equal to Total assets LESS Total liabilities.

Simple example

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 4: / Line 4: @@
-This figure is also equal to the book value of equity, also known as shareholders' funds.
+:<span style="color:#4B0082">'''''Simple example'''''</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.