IHTM25081 - Valuing the business:
Investigating the profit and loss account
As part of your investigation you should look at the profit
and loss account as
- it may show a deduction for rent which
could indicate that the business had a tenancy, the capital value
of which may not be shown in the balance sheet.
- it may indicate that assets supposedly
used in the business are in fact private investments.
SAV also use the profit and loss account to value goodwill.
