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Financial Management

Why In retained earnings mv is not taken

Ramya Telikicherla

CA Inter

★ 6K+

02-Apr-24 18:02

123

Answers (3)

Because RE are not traded in market unlike the other sources

aditya yanamandra

Faculty

02-Apr-24 19:50

aditya yanamandra Faculty

Because RE are not traded in market unlike the other sources

Ok sir but why here they mentioned as current Market price

Thread Starter

Ramya Telikicherla

CA Inter

★ 6K+

02-Apr-24 22:14

(Updated)

In computation of Kr based on MV, we do not separately compute for RE, instead we show entirely for ESC as RE are not traded in the market is what I meant. So if computation is based on BV, MPS can be considered

aditya yanamandra

Faculty

03-Apr-24 13:33

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