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Wednesday, 15 October 2008

True though it may be ...



Jack

Fin24

Oct 15 2008 21:06

You've been banging on about this for a long time. However, true though it may be, businessmen dont like it! It helps them to have equity and assets stated at artificially lower values, because it inflates ROE, ROA etc! Of course, its good in another way too. They can point to higher, more recent COS and use this as an excuse to increase prices! These are the real reasons businesses don't want RVA. I dont believe they can be persuaded otherwise. It would have to be a statutory rule