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Sep 17 Q5 (ii)

E

ElTiempo

Member
Hi

The examiners report says that EV net assets are already determined on a market value basis. Would someone be able to help me understand why this is the case with the passive approach?

Thanks
 
The shareholder net assets wouldn’t be expected to change as they are based on current asset values and liability values, neither of which are changing here (only future expectations for calculating PVFP). This is a relatively minor point in this question I think, so probably not worth worrying about too much (it seems more important to understand changes to PVFP calculation).
 
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