What Are Active Assets?

Effective assets refer to assets that are in operation or that are not in operation but have potential operational capabilities and can contribute to the profitability of the enterprise.

Effective assets

1. Enterprise value assessment is divided into effective assets and invalid assets according to the effectiveness of specific assets in the enterprise.

Invalid assets

Refers to the collective name of non-operating assets, idle assets, and assets that are not operating assets and cannot contribute to the profitability of the enterprise, and are assets that have lost operating and profitability in the assessed enterprise. .

Note: The division and definition of valid assets and invalid assets are specific. They are only used in the specific operation of enterprise value assessment. These definitions are not general. Invalid assets may also have exchange value and can be assessed separately.

2. When defining the general scope of enterprise value assessment and valid and invalid assets, the following four points should be noted:

Asset assets with unclear property rights at the time of evaluation should be classified as "pending property assets" and can be included in the general scope of enterprise value evaluation, but in the specific operation, special treatment and explanation should be done and need to be included in the evaluation report Disclosure.

On the basis of clear property rights, distinguish between effective assets and invalid assets.

When distinguishing between the following points:

The judgment of an enterprise's effective assets should be based on the contribution of the assets to the profitability of the enterprise, and it must not deviate from this principle;

The profitability of an enterprise formed by the contribution of effective assets should be the normal profitability of the enterprise. Short-term profits and related assets formed by accidental factors cannot be used as a basis for judging enterprise profitability and dividing effective assets;

The appraiser should objectively disclose the value of the enterprise. If the seller of the enterprise intends to carry out corporate asset reorganization, it shall be premised that it does not affect the profitability of the enterprise.

In the enterprise value assessment, there are two ways to deal with invalid assets:

The company's invalid assets are stripped out separately, and the value of the invalid assets is not considered as a component of the enterprise value. It is treated separately as an independent part and disclosed in the evaluation report;

Separate the company's invalid assets separately, evaluate them individually using an appropriate evaluation method for the invalid assets, and add the evaluation value to the final result of the enterprise value evaluation, and disclose it in the evaluation report.

For example, when the seller of the enterprise intends to improve the weak link that affects the profitability of the enterprise through the method of filling in and filling up, the assessor should focus on judging the impact of the improvement on the correct disclosure of the profitability of the enterprise. For example: the weak link of corporate profitability caused by factors such as process "bottleneck" and capital "bottleneck".

The specific assets within the scope of general assets in the enterprise value assessment are divided into effective assets and surplus assets according to their functions in the enterprise. A reasonable distinction between the two is an important prerequisite for enterprise value assessment.

1. Enterprise value assessment is divided into effective assets and surplus assets according to the effectiveness of specific assets in the enterprise

(1) Effective assets

Refers to assets that are in operation or are not in operation but are required by the enterprise and have potential operational capabilities and can contribute to the profitability of the enterprise.

(2) Surplus assets

Refers to the relative surplus and invalid assets of an enterprise that cannot participate in production and operation and cannot contribute to the profitability of the enterprise. (Such as excess non-operating assets, idle assets, and assets that, although they are operating assets, have lost their ability to operate and profit in the assessed enterprise)

2. Significance of dividing effective assets and surplus assets

(1) Effective assets are the basis of enterprise value assessment. Although surplus assets may also have exchange value, the exchange value of surplus assets and the determinants and formation paths of effective asset values are different.

(2) Correctly define and distinguish effective assets and surplus assets, and use the company's effective assets as the basic scope or specific operating scope for assessing the value of the enterprise using various assessment methods and methods, and separately evaluate surplus assets or perform other technical treatment .

3. When defining the general scope of enterprise value assessment and the effective and surplus assets, the following points should be noted:

(1) Assets whose property rights are unclear at the time of evaluation shall be classified as "pending property assets" and may be included in the general scope of enterprise value evaluation, but in the specific operation, special treatment and explanation shall be done, and it is necessary to evaluate Disclosed in the report.

(2) On the basis of clear property rights, distinguish between effective assets and surplus assets of the enterprise.

When distinguishing between the following points:

The judgment of an enterprise's effective assets should be based on the contribution of the assets to the profitability of the enterprise, and it must not deviate from this principle;

The profitability of an enterprise formed by the contribution of effective assets should be the normal profitability of the enterprise. Short-term profits and related assets formed by accidental factors cannot be used as a basis for judging the profitability of enterprises and dividing effective assets;

The appraiser should objectively disclose the value of the enterprise. If the seller of the enterprise intends to restructure the assets of the enterprise, it should be based on the premise that it will not affect the profitability of the enterprise.

(3) In the enterprise value assessment, there are two ways to deal with surplus assets:

Perform asset divestiture. Before using multiple assessment methods and methods to evaluate effective assets and their corporate value, separate the surplus assets of the company separately. The value of surplus assets is not considered as a component of corporate value. Separate parts are handled separately and disclosed in the assessment report;

Before using multiple evaluation methods and methods to evaluate effective assets and their corporate value, separate the company s surplus assets separately, use a suitable assessment method for the surplus assets to separately evaluate them, and sum up the assessment values Into the final results of the enterprise value assessment and disclosed in the assessment report.