What Is the Global Assessment of Functioning?

Overall asset evaluation refers to the evaluation of the value of all assets involved in a certain business activity.

Overall asset valuation

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Overall asset evaluation refers to the assessment of all assets involved in a certain type of business activity.

For the establishment of companies, corporate shareholding reforms, issuance of stock listings,

1. Find out the family and improve the management of corporate assets. Asset evaluation for financial reporting purposes has become an important part of corporate asset management. For the evaluation, management and application of tangible assets, the company itself has formed a relatively scientific and effective system for many years, and its assets have been fully disclosed in relevant financial reports. However, what kind of intangible assets does an enterprise have and what is its value? As an enterprise's manager, it is not clear, which forms a blind spot in asset management. Only by knowing the true value of this part of the asset can we be sure of it, and then change from passive management to active management to standardize it to ensure the integrity of corporate assets.

2. Provide management and decision basis for operators. The essence of the value of intangible assets is the cultivation and development of intangible assets, the ability of enterprises to innovate and make profits, the use of enterprise resources and utilization efficiency and effectiveness, the potential for sustainable development of enterprises, the level of corporate management and so on. The evaluation process is a process of asset inventory, with the focus on finding out

According to China's asset valuation management requirements and international asset valuation practices, asset valuation criteria in asset valuation include replacement costs, current market prices, present value of earnings, and liquidation prices.
1. Replacement cost Replacement cost is also called current cost or replacement value. It refers to the cost of replacing an asset according to its function and keeping the asset in use under the current conditions. The replacement cost standard must be established on the premise of asset renewal. If the asset is repurposed or cannot be operated and the operation is interrupted, another price standard should be used in the asset evaluation. The asset renewal forms include current renewal, renewal renewal, and renewal renewal. Different renewal forms will affect specific factors considered in the replacement cost calculation.
2. Current market price The current market price refers to the sales price of the intangible asset evaluation on the open market. This sales can be actual sales or simulated sales. The current market price should be conducted under the conditions of sufficient market competition, no monopoly and coercion on both sides of the transaction, and sufficient time and ability for both parties to understand the facts, independent judgment and rational choices. The basic factors that determine the current market price of an asset are: the cost of reproduction of the asset itself. Generally speaking, the price of an asset depends on the level of its production costs. The current functional status, quality factors, technical parameters, and wear and tear of an asset will generally be better if it is of high quality. Market supply and demand, in general, an asset's If the demand exceeds demand, the price will fall; if the demand exceeds supply, the price will rise.
Under the current circumstances in China, asset evaluation criteria have not been fully formed, market information channels are not smooth enough, and the practical experience of evaluators needs to be further improved. Therefore, in addition to land and house evaluations, it is difficult to evaluate certain assets with the current market price as the standard price.
3 Present value of income The present value of income refers to the sum of the discounted present value of future net cash flows generated by the asset evaluation. The essence of the present value of income is the market price of principal, which is the principal conversion of residual value. In a market economy, the direct purpose of investors' investment is to obtain the expected return. Under normal operating conditions, if investors want to obtain more returns, they must increase investment or increase the rate of return on the asset side. The more you invest, the greater the asset value, and vice versa. From the purpose of the principal movement, principal and income can be converted into each other. By investing a certain amount of principal, you can obtain a quantitative benefit. Conversely, according to a certain amount of revenue, you can also trace back to a certain amount of corresponding principal . This has formed two concepts: the first is the rate of return on principal, which is the ratio of the principal invested to the expected return, and the second is the rate of return on principal, which is the ratio of expected return to principal. The present value of income is the quotient of the annual expected income divided by the applicable principal rate of return.
Taking the present value of income as the price standard for assets means that the asset owner's flow is not ordinary commodity buying and selling, but buying and selling assets as income earning capacity. Intangible assets are evaluated when the expected returns are relatively stable:
The present value of assets = present value of returns = expected return / applicable rate of return on assets. There are two shortcomings in the application of the present value standard. One is that it is difficult to predict the expected amount of return and the return on assets. The second is to use the expected return as the basis for the value of the asset being evaluated, which seems to have nothing to do with the asset entity itself, so it is difficult to use. However, despite this, the present value of earnings still has its irreplaceable advantages.
The present value of income standard is based on the premise of the company's continuous operation. The asset evaluation criteria can only be an overall asset or an asset with separate profitability, and it is more scientific to apply under the condition that the expected return is relatively stable.
4 Liquidation price refers to the liquidation price of an enterprise's intangible assets after the suspension of business or bankruptcy. It is required to dispose of its assets in a liquidated manner within a certain period of time, in order to settle debts and allocate residual equity, which is the value of assets used in abnormal markets The price of the asset auction under conditions. There are various reasons for a company to suspend business. It may be bankruptcy or closure, or it may be due to expire. But no matter what the reason is, the core problem is to pay off the debt, and usually pay it in cash. This determines that the basic characteristic of liquidation prices is fast cash. Due to time limit and buyer restrictions, its price is generally much lower than the current market price. The liquidation prices include compulsory liquidation prices, orderly liquidation prices and continued liquidation prices. Taking the liquidation price as the valuation standard for assets is called the liquidation price standard.
The price standard of the asset evaluation business shall be selected according to the nature of the asset business, the purpose of the evaluation and the prerequisites. In principle, asset valuation business and price types should be strictly matched, and there is no question of mutual replacement of asset valuation criteria. However, in practice, for various reasons and the need for evaluation conditions, the necessity of price type substitution may arise during specific operations. In some cases, this substitution may also improve the quality of assessments and asset business, and also facilitate practical operations.