Property Valuation Of The Enterprise

Types of property valuation of the enterprise:

Depending on the types of accounting objects related to assets in the form of property, the nature of their acquisition and economic conditions, the following types of property valuation are used in accounting:

At the actual initial cost (cost) , which is determined by the actual cost of acquisition or production of a particular type of property. Property valuation at the actual cost of acquisition or production is the main estimate used in accounting during the entire life cycle of the property. The property of long-term use is reflected in the financial statements at residual value (the book value of the property less accumulated depreciation);

At the current (replacement) cost – the cost that must be paid or with which the equivalent replacement should be carried out in case of need to replace any types of property;

At the current market value (the price of a possible realization) , i.e. at a value that can be obtained as a result of the possible sale of the object or at the time of its liquidation.

In the Russian accounting system, an organization can use valuation at market value, as a rule, when accepting for accounting certain types of assets when they are received free of charge, returnable materials received from the liquidation of fixed assets, work in progress, etc. Accounting items related to funds in calculations and liabilities are reflected in accounting and reporting in amounts determined taking into account interest (income) stipulated by economic contracts.

The valuation of the property of an enterprise is carried out on certain dates of business operations, as a result of which it is accepted for accounting in the organization. These dates can be:

  • The date of receipt of ownership of the property;
  • The date indicated in the inventory list;
  • Reporting date – as of December 31 of the reporting year;
  • Date of transfer of ownership of the property to the new owner.
  • Types of property valuation of the enterprise

Depending on the types of accounting objects related to assets in the form of property, the nature of their acquisition and the economic situation, the following types of valuation are used in accounting:

At the actual initial cost (cost), which is determined by the actual cost of acquisition or production of a particular type of property. Property valuation at the actual cost of acquisition or production is the main estimate used in accounting during the entire life cycle of the property. The property of long-term use is reflected in the financial statements at residual value (the book value of the property less accumulated depreciation);

At the current (replacement) cost – the cost that must be paid or with which the equivalent replacement should be carried out in case of need to replace any types of property;

At the current market value (the price of a possible realization), i.e. at a value that can be obtained as a result of the possible sale of the property or at the time of its liquidation.

The valuation of the property of an enterprise is carried out on certain dates of business operations, as a result of which it is accepted for accounting in the organization.

You can find more:  http://www.wcvaluers.com.au/

These dates can be:

Share on page Types of property valuation:

Types of property valuation depend on the purpose of its implementation and are as follows:

Property valuation of enterprises and its shares. It is a set of actions, the purpose of which is to establish the value of a firm’s assets that can or will be profitable;

Real estate valuation. Promotes the implementation of profitable transactions, the adoption of productive decisions of their conduct;

Assessment of damage to property from natural disasters, gulf, fire, unlawful actions of persons or government agencies;

Land valuation. Determining the value of one or more land plots;

Assessment of housing (apartments) . It may include both a full definition of the cost of housing and a share of the property;

Road transport assessment. The process of determining the value of the vehicle on the market at present;

Evaluation of machinery and equipment. The goal is to determine the real value. Two approaches are applied: analogue and depreciated replacement-cost valuation.;

Damage assessment from a traffic accident:

For each type of property valuation, there are special methods and approaches that allow you to most accurately and reliably determine the value of the property.

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