Enterprise value is the market capitalisation of ordinary shares plus preferred shares and debts minus cash and cash equivalent. It is the cost to the acquirer when it buy over a company‘s ordinary shares. It is because the acquirer will assume the debts and cash will belongs to the acquirer.
Enterprise value tell acquirer the actual cost when buying the ordinary shares. That is the debts need to pay and the cash you have in the company.
In accordance with SFRS109, investment in equity instruments must be subsequently measured at fair value. In limited circumstances, cost represents the best estimate when recent information not avail
In contract revenue to recognise using input method, one of the key audit procedures is to ascertain the budgeted cost of the project contract is reasonable. We need to test the underlining assumptio
For change of accounting policy for PPE from cost model to revaluation model. It is not follow FRS 8 as exempted from prior year adjustment. The change will apply prospectively from the date of reva