Question

what is the difference between net asset method and net payment method?

Answer 1

Explanation:

Net payment Method Under this method , consideration is ascertained by adding up the cash paid , agreed value of assets given and the agreed values of securities allotted by the transferee company to the transferor company in discharge of consideration.

Net assets are the value of a company's assets minus its liabilities. It is calculated ((Total Fixed Assets + Total Current Assets) – (Total Current Liabilities + Total Long Term Liabilities)).

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Answer 2

Answer:

Net asset method:

• The reported values of a company's assets and liabilities are modified using the adjusted net asset method, a business valuation tool, to more accurately represent the company's assessed current fair market values.
• The net effect provides values that may be utilized in going-concern evaluations or liquidation scenarios by increasing or decreasing asset or obligation values.
• The asset accumulation strategy is an alternative name for this approach.

Net Payment Method:

• The stated values of a company's assets and liabilities are altered by the adjusted net asset method, a method for valuing businesses that more accurately reflects the anticipated current fair market value of the company's assets and liabilities.
• The net effect provides values that may be employed in going-concern evaluations or liquidation scenarios by varying asset or obligation values upward or downward.
• Also known as the asset accumulation approach, this technique.

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