Gain on sale of asset is occured when actual value of asset is less then the sale value of asset.
The value of an asset based on expected future cash flows is determined through the process of discounted cash flow (DCF) analysis. This involves estimating the future cash flows the asset is expected to generate and then discounting them back to their present value using an appropriate discount rate, which reflects the risk and time value of money. The sum of these discounted cash flows provides the asset's intrinsic value. Ultimately, this valuation helps investors assess whether the asset is overvalued or undervalued in the market.
Obsolete asset is that asset which suddenly becomes obsolete due to any technological change or any reason and has no value while written down asset is asset which is usable asset with written down value
Book value is the value of asset shown in financial statements while fair value is the value at which asset can be sold in market
Is it true the fair value of an asset retirement obligation recorded as an increase to the related asset and as a liability?
intrinsic value
How is the value of any asset whose value is based on expected future cash flows determined?
Book value of an asset is the value which is shown in books of accounts while market value of asset is the value which is currently same asset is selling in market so both of these values are not same but it can be same but normally they are not same.
Gain on sale of asset is occured when actual value of asset is less then the sale value of asset.
A common valuation measure used outside North America, particularly in the insurance industry. It is calculated by adding the adjusted net asset value and the present value of future profits of a firm. The present value of future profits considers the potential profits that shareholders will receive in the future, while adjusted net asset value considers the funds belonging to shareholders that have been accumulated in the past.
To find the salvage value of an asset, subtract the estimated disposal costs from the asset's current market value. This value represents the amount the asset is expected to be worth at the end of its useful life.
A common valuation measure used outside North America, particularly in the insurance industry. It is calculated by adding the adjusted net asset value and the present value of future profits of a firm. The present value of future profits considers the potential profits that shareholders will receive in the future, while adjusted net asset value considers the funds belonging to shareholders that have been accumulated in the past.
The value of an asset based on expected future cash flows is determined through the process of discounted cash flow (DCF) analysis. This involves estimating the future cash flows the asset is expected to generate and then discounting them back to their present value using an appropriate discount rate, which reflects the risk and time value of money. The sum of these discounted cash flows provides the asset's intrinsic value. Ultimately, this valuation helps investors assess whether the asset is overvalued or undervalued in the market.
1. Estimated salvage value is the amount which is expected to be received from disposal of fully depreciated asset after useful life of asset.
Obsolete asset is that asset which suddenly becomes obsolete due to any technological change or any reason and has no value while written down asset is asset which is usable asset with written down value
Book value of asset is the value of asset shown in books of accounts while fair value of asset is the current price at which that product is selling or sellable in market.
Book value is the value of asset shown in financial statements while fair value is the value at which asset can be sold in market