Tag Archives: #AssetAllocation

Annual Impairment Testing of Assets: Which assets are required to be tested for impairment Annually ?

Annual Impairment Testing of Assets Under accounting standards such as the International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP), certain assets require to test for impairment annually. Impairment testing involves assessing whether the carrying value of an asset exceeds its recoverable amount, which is the higher of its fair value less costs… Read More »

Q14.148 Tax planning with reference to financial management decision ?

Financial management decision Website link Financial management decision: Tax planning with reference to involves strategically considering and incorporating tax implications into the broader financial strategies of a company or individual. This approach aims to optimize financial management practices while minimizing tax liabilities. Here are some key considerations for tax planning with respect to financial management… Read More »

When assets are Recorded at Original value?

Recording Assets at Original Value In accounting, understanding how and when to record assets is crucial for accurate financial reporting. One important concept is the recording of assets at their original value. What Is Original Value? Original value refers to the initial cost of acquiring an asset. This includes the purchase price as well… Read More »

Is net worth liquid?

Net Worth Liquid Net Worth Liquid does not consider liquidity. It represents the difference between a person’s or entity’s assets and liabilities. It is a measure of wealth, reflecting the value of the individual’s or entity’s assets after subtracting their debts or liabilities. While net worth indicates the value of one’s overall financial position,… Read More »

When valuing Certain financial instruments?

Financial Instruments Financial Instruments, When valuing certain financial instruments, such as stocks, bonds, derivatives, or other securities, various valuation techniques and methodologies can be apply. The choice of valuation method depends on the specific instrument and market conditions. Here are some commonly used valuation approaches: 1.Market Approach: The market approach relies on market-based data and… Read More »

Can Assets be Depreciated?

Asset Depreciation: Can Assets Be Depreciated? When businesses or individuals purchase assets like machinery, equipment, or buildings, these assets typically wear down or lose value over time. This natural decline in value is recognized as depreciation. But, can all assets be depreciated? Let’s break it down. What is Depreciation? Depreciation is the accounting process of… Read More »

Is a managed fund worth it?

Managed Fund Whether a managed fund is worth it depends on various factors and individual preferences. Here are some considerations to help you evaluate the worth of a managed fund: 1. Professional Expertise: These funds are typically managed by professional fund managers who have expertise in investment strategies and market analysis. If you lack… Read More »

What is considered liquid net worth?

Considered Liquid Net Worth Considered liquid net worth refers to the portion of an individual’s or entity’s net worth that consists of assets that can readily converted into cash without significant loss in value or time delay. It represents the portion of net worth that is easily accessible and available for immediate use. Liquid… Read More »

What is liquid net worth calculator?

What is a Liquid Net Worth Calculator In personal finance, understanding your liquid net worth is essential for making informed decisions about investments, savings, and overall financial health. A liquid net worth calculator is a handy tool that helps you determine how much of your net worth can be quickly converted into cash or… Read More »

How to calculate liquid net worth of a person?

Liquid Net Worth of a Person Understanding your financial health is crucial, and one of the most telling indicators is your liquid net worth. Unlike general net worth, which includes all assets, liquid net worth focuses on the assets that can be quickly and easily converted to cash. This measure provides a clearer picture of… Read More »