Reference Value
From FairShares Wiki 3.x
The Reference Value is calculated by adding the book value of fixed assets (i.e. buildings, property, machinery minus depreciation) to 20 times the Investor Share distributed in the previous accounting period.
For example, if a FairShares Enterprise owns a property valued at £300k, and generates an Investor Share of £25k the previous year, then the new Reference Value will be:
£300,000 + (20 x £25,000) = £800,000
The Reference Value is calculated at the start of each year to decide the number of Member Shares to issue to [[Labour Shareholders|Labour] and User Shareholders.
Return to the FairShares Glossary.
