5. Its all about perception Rs 1500 Rs 15,000 Rs 50,000 Rs 150,000 Rs 350,000
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20. SFAS 157… Preference of approach depends upon relevant circumstances!! Valuation techniques Market approach - Uses prices and information generated by market transactions involving comparable assets/ liabilities Income approach - Converts future amounts to a single present discounted amount Cost approach - Amount currently required to replace service capacity of asset
21. SFAS 157 Levels of inputs Level 1: Observable market prices Level 2:Observable prices other than quoted prices Level 3: Unobservable inputs Quoted prices for similar assets and liabilities in active markets Quoted prices for similar assets and liabilities in inactive markets Observable inputs other than Quoted prices Inputs derived from / that can be corroborated by observable market data Entity’s reporting data Unobservable interest rates in a specified currency (related to foreign currency swaps)
27. “ $50M valuation offered by investor can be expensive than $30M asked by entrepreneur” “ Understanding the technicalities and other conditions of valuations is equally important”