An in-depth look into the custom used as a basis for recording costs in accounting periods, including historical cost, current cost, and replacement cost conventions.
Understanding the cost of replacing an asset at the balance-sheet date, considering factors like obsolescence and market dynamics.
A comprehensive guide to understanding the concept of Entry Value, its historical context, applications in accounting, and comparisons with Exit Value.
The presentation of financial information prepared on different bases in a columnar format to facilitate understanding by the user.
NEXT-IN-FIRST-OUT COST (NIFO cost) is a method of valuing units of raw material or finished goods issued from stock by using the next unit price at which a consignment will be received for pricing the issues.
Q Ratio (also known as Tobin's Q) is a ratio devised by US economic analyst James Tobin. It measures the impact of intangible assets on business value by comparing the market value of a business to the replacement cost of its assets.
Replacement Cost refers to the accounting system where assets are valued and depreciation is calculated based on the cost of replacing buildings and equipment. This method can be complex due to technological advancements and judgment in approximations.
Understanding the concept of value to the business in current-cost accounting, including historical context, key events, and detailed explanations with practical examples.
A comprehensive explanation of Insurable Value, focusing on the cost of fully replacing destructible improvements to a property, typically based on replacement cost rather than market value.
An asset is recorded at its historical cost but the amount is written down to market if this becomes lower than the original cost. Market value is determined by replacement cost but not greater than net realizable value (NRV) nor less than NRV minus a normal profit.
A comprehensive comparison between Market Value and Actual Cash Value in property valuation, including definitions, examples, and applications in various fields.
A detailed overview of Property Depreciation Insurance, a type of coverage that provides for the replacement of damaged or destroyed property on a new replacement cost basis without any deduction for depreciation.
