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What are shareholders funds?

20/03/11 12:01 PM

Shareholders funds are the equity left in the business, which is owned by the shareholders as they in turn own the company and its assets. It is essentially all assets minus all liabilities, and is shown on the company’s balance sheet in their accounts.

It can be used as a guide in smaller companies to show if a profit has been realised, or if the business made a loss. It can be impacted by dividend payments, and revaluations of assets within the company however, but it is a good basic guide as to the financial performance of the business.

Posted by Optimum | in company formations | No Comments »

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