What is the value of value?

also known as the accounting value, the support value is the value of the asset that is reflected in the company's accounting records, especially in the balance sheet of the company. The value is usually based on the original price of the asset after permitting any amount of amortization, permitted depreciation or any type of damage that can be applicable. In addition to using the term to reference to the value of specific assets, as shown in the balance sheet, this term is also used to indicate net assets of the company.

The value transfer differs very much from the market value. The market value has to do with the current price that the asset would bring to the open market. On the other hand, the transfer value is based on the original purchase price, allowing any factors that could reduce the value. This means that it is likely to have a significant difference in market value and portable value. For example, if the company bought a package of real estate fifty years ago and no factors have appeared in the depreciation of land, the main value will be the original purchaseprice. At the same time, the market value of real estate is likely to be much higher, due to factors that have increased the demand for the land in this area.

In some cases, the main value is more than just the purchase price. For example, the purchase of a building and surrounding assets may include paying the selling price for assets, together with the closure of costs, fees paid to the real estate broker, paying back tax taxes or any other costs incurred in obtaining the asset. All and all expenses that are necessary to allow the investor to take over the ownership of the asset can be correctly included in the calculation of the accounting value.

If the idea is to determine the total portable value of the company, it is necessary to identify all assets that are currently based on the time of these assets on current book values. Any obligations such as outstanding debt or h are deducted from this issueOdession of long -term bonds issued by companies. Depending on the accounting method, which prevails in the area where the company is located, the value of intangible assets can also be deducted from the value of the total assets. The calculation of the supporting value of this type is often used as a means of setting up a sales price for business, although some attention is also paid to the current market value of all assets after deducting any existing obligations.