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financeman
May 24, 2009, 01:05 PM
Is it posibble for equity in balance sheet to remain negative?

hamzashakaa
May 25, 2009, 03:59 AM
It happens but its not OK. This means that the company has accumulated losses instead of retained earnings and that the accumulated losses are in excess of paid up capital. Another situation is that the company could have large amounts of unrealized holding losses such as unrealized holding losses from available for sale securities or negative foreign currency translation adjustment.