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Market capitalisation may be greater than book value for many reasons, including:
Customer satisfaction is considered to be valuable but is not measured in the statement of
financial position.
Accounting standards specifically exclude the recognition of skilled staff.
All of the options are correct.
Accountants in general apply the historical cost method for assets, as opposed to fair value.

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Market capitalisation may be greater than book value for many reason.pdf

  • 1. Market capitalisation may be greater than book value for many reasons, including: Customer satisfaction is considered to be valuable but is not measured in the statement of financial position. Accounting standards specifically exclude the recognition of skilled staff. All of the options are correct. Accountants in general apply the historical cost method for assets, as opposed to fair value.