Tag Archives: #AssetManagement

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 »

How to verify Assets?

How to verify Assets Verifying assets typically involves conducting a physical inventory count or reconciliation with the recorded asset information in order to ensure accuracy and completeness. Here are steps you can follow to verify assets: 1.Asset Register: Begin by reviewing the organization’s asset register or fixed asset ledger, which should contain a comprehensive list… Read More »

Fund Utilization Rate?

Fund Utilization Rate It refers to the percentage or proportion of funds that have been utilized or spent compared to the total available funds. It is a measure of how effectively and efficiently funds can utilize for a specific purpose or project. This is calculated by dividing the total funds utilized by the total available… Read More »

Q20.15 Preparing financial analysis report: How to prepare financial analysis report ?

Preparing financial analysis report Preparing financial analysis report Website link Preparing financial analysis report: entails the examination and interpretation of financial information to evaluate a company’s performance and overall financial well-being. Here are the steps to prepare a financial analysis report: 1.Gather Financial Statements: Collect the financial statements of the… Read More »

Is LLP best for property investment ?

LLP property investment Here’s how an LLP can be used for property investment: 1.Liability Protection: One advantage of an is that it offers limited liability protection to its partners. This means that the personal assets of the partners are generally shielded from the liabilities of the partnership. Any debts or legal obligations arising from… Read More »

When assets are Recorded at Original value?

Recording Assets at Original Value Recording Assets at Original Value, When assets are record at their original value, it means that their initial cost or acquisition cost is use as the basis for their recognition on the balance sheet. The original value typically represents the amount paid or incurred to acquire or produce the… Read More »

Asset verification Meaning?

Asset verification Asset verification refers to the process of confirming the existence, ownership, and value of assets held by an individual, organization, or entity. It involves conducting a thorough examination and assessment of various types of assets. Such as real estate, vehicles, equipment, inventory, financial investments, and intellectual property, among others. The purpose of assets… 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 »

Asset depreciation: Can Assets be Depreciated ?

Asset depreciation: Yes, assets can be depreciated. Depreciation serves as an accounting technique employed to distribute the cost of an asset throughout its useful lifespan. It signifies the gradual decline in the worth of an asset caused by factors such as wear and tear, obsolescence, or other relevant elements. Depreciation typically apply on tangible assets… Read More »