Working out Tangible Net Worth
Hi all,
I hope I have posted this in the correct place. Apologies if not.
I am trying to establish the tangible net worth of a company based on their balance sheet. This company is also the parent of a group of companies, but I only want the TNW of the stand alone company (i.e. not the group).
Because it is a parent company it has an 'Investment in Subsidiaries' line in its balance sheet. Now of course, these subsidiaries consist of a lot of Intangible Assets (but we are not to know that as per the 'Investment in Sub.' line)
My question is, do we consider 'Investment in Sub' to be entirely a tangible asset, despite the fact that in reality we know that these subsidiaries consist of intangible assets? How would we include this 'Investments' line when calculating TNW.
I hope this question has made sense, but please let me know if not.
Many thanks,