What is the accounting value?
When dealing with shares, analysts will often want to know the accounting value of the ordinary shares. In principle, the accounting value concerns the calculated value of the company's ordinary shares from the latest balance sheet. There are several elements related to the calculation of the current accounting value that are necessary in a number of different applications.
The initial accounting value of any assets is either the cash value of the asset or the acquisition costs. Of course, cash assets are not subject to depreciation. Buildings, land and operating equipment should be appreciated on the basis of the initial acquisition costs, knowing that the total acquisition costs include both the purchase price and any other acquisition expenditure, such as brokerage fees or other types of processing fees.
Over time, there are factors that affect this initial accounting value. Depreciation of some assets will mean that the actual monetary value may be lower than the acquisition costs. Amortization and exhaustion will also be HRAt role in determining the published accounting value of both individual assets and total assets of the company. Since different factors affect the actual accounting value from one period to another, the change is reflected in the balance sheet covering each period. This helps to ensure that value investors can always have access to the latest status of the accounting value of the asset.
When using the term, the accounting value is common in many countries, this process is sometimes referred to as net value of assets . This is recognized that the accounting value is generally represented as its own capital in the company, because capital is in terms of claiming shareholders from the Company's assets, minus any outstanding obligations.
In cases where it is going to be aquidated and the assets are sold out, the accounting value becomes a focus for the payment of current shareholders. An accounting value that takes into account the value of SOUThe early liabilities of the company holding the company ensure that persons currently in the company receive a payment for each share equal to a value equal to a value equal to a value equal to a value equal to the value that is in the final balance sheet.