Accounting Valuation
Barron's Accounting Dictionary:
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Accounting Valuation
Valuation of assets in accounting.
Correct valuation is important. If, for example, an asset is valued incorrectly, it is impossible to draw accurate conclusions about a firm's liquidity or its value in liquidation. Valuation is usually made in accordance with generally accepted accounting principles (gaap).
Correct valuation is important. If, for example, an asset is valued incorrectly, it is impossible to draw accurate conclusions about a firm's liquidity or its value in liquidation. Valuation is usually made in accordance with generally accepted accounting principles (gaap).
| Accounting System, Accounting Standards Executive Committee (ACCSEC), Accounting Standards Committee | |
| Accounts Payable, Accounts Receivable, Accounts Receivable Discounted |
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Accounting Valuation
Investopedia Financial Dictionary:
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Accounting Valuation
The process of valuing a company’s assets for financial-reporting purposes. Several accounting-valuation methods are used while preparing financial statements in order to value assets. Many valuation methods are stipulated by accounting rules, such as the need to use an accepted options model to value the options that a company grants to employees. Other assets are valued simply by the price paid, such as real estate.
Investopedia Says:
Accounting valuation is important, because the value of assets on a company’s financial statements needs to be reliable. Analysis of this valuation is just as important as the valuation itself. Some assets, such as real estate, which is carried at cost less depreciation, can be carried on the balance sheet at far from their true value.
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Barron's Accounting Dictionary
Dictionary of Accounting Terms. Copyright © 2010 by Barron's Educational Series, Inc. All rights reserved.
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