Hi, There are 2 kinds of reference to shares on a companys balance sheet. In the current assets section there is the shares of other companies that it holds for investment purposes. So everytime current assets is calculated we typically take into account the most recent share price.
Jan 05 2013 10:59 AM
The second reference to shares is in the "Shareholders equity" section. These are shares of the company itself and it is always represented as book value and not market value and hence no market share price is involved.
Does this make sense?