Investment Learning

The balance sheets of all companies I`ve seen always shows TOTAL ASSETS AND TOTAL LIABLITIES as same can any one please put some light on it , as Im new to this trading platform

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You can ask here.


To start with, in accounting concepts, an entity is seperate from its owner.So, if an owner invests Rs.100, it will be like the business/entity has borrowed Rs.100 from the owner.Hence, Rs.100 will be shown in assets side in Cash and Bank balance and Rs.100 will be shown as liability (to be paid to owner>>>under Equity/Capital).
Out of the 100, if 30 is used to buy fixed asset, then cash and bank balance will be 70 and fixed assets will be Rs.30 making the total asset 100 and liabilities remaining unchanged at 100.


Total assets and total liabilities are same because very financial transacton needs to be balanced. Suppose you had Rs 20000 as bank balance. Ideally your bank statement should show Rs 20000 as liability to you. and you will show Rs 20000 as asset in your books … Hope this is clear now …



What about Intangibale asset in Balance sheet company when it write off ?

Hi ChaitanyaC, i need a help to understand why sometimes the target price is set much below than the target price for eg GPPL current price is 144.30 but ICICI direct reports have given a target pricing of 120…
What this indicates and what should be the focus as a investor on such target price

If you are referring to the 2023 May 25th report, then the price at the time of recommendation was 110, and the target price was 120, an upside of 9%, which was mentioned in the report.

I have very limited experience of reading such reports, but what I can tell is that, the focus should be on the details that are given in such reports, the analysis, the forecasts etc., in essence the fundamentals, and not the price. We may gain additional insights into the business along with our understanding, and as such, reports can help.

As far as the price is concerned, I am not sure if even short term traders would pay attention to such targets, let alone investors.

If your questions are not specific to any company, and are general in nature, you can post them here.

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Depends on whether the intangible asset has finite useful life or indefinite life.
Now, as per Ind AS 38, an intangible asset with a finite useful life shall be depreciated on a systematic basis over its useful life.
An intangible asset with an indefinite useful life (example below) shall not be amortised, but is required to be checked for impairment annually,or whenever there is an indication for impairment as per Ind As 36.

Indefinite life comes under various circumstances , like when a company takesover another company, it may pay an amount in excess of the net assets of the acquiree company, which will be recorded as Goodwill in the books of acquirer company.
This goodwill is an intangible asset with indefinite life, and cannot be amortised annually, but can only be checked for impairment ,till the acquired company is sold out or goodwill is fully impaired.


When intangible asset is written off > The co makes a loss on this amount

You may know that the profit/loss is added to reserves in a balance sheet

So on asset side intangible asset disappears and on liabilities side there would be reduction in reserves