Which based approach is best used to show business is non operating and has been generating losses and the company's focus is holding investments are real estate?
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In this case, a non operating based approach can be used.
A non operating based approach or asset is least important for any important business activity.
It actually indicates that the business is non operation and in further to this, it indicates that the business is suffering from heavy losses.
Further to this, it also shows that the company's main focus has been in holding investments and in such cases, liabilities are found.
They generate a minor share on Return on investment and many people call this as redundant assets as they are not of any use.
Based on this, a company might decide to shift somewhere else, use alternate equipment or do something that is more viable. The results can be found out by share estimation.
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