Does provisions need to be subtracted from reserves if net
worth is calculated on the basis of share capital based method



Does provisions need to be subtracted from reserves if net worth is calculated on the basis of sha..

Answer / Sujeet Kumar

Provisions should not be deducted from reserves when calculating net worth using the share capital-based method. Reserves are a part of shareholders' funds and represent the company's accumulated profits that have been set aside for specific purposes.

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