Accounting Valuation


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.

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.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Accounting liquidity — (liquidity) is a measure of the ability of a debtor to pay their debts as and when they fall due. It is usually expressed as a ratio or a percentage of current liabilities.Calculating liquidityFor a corporation with a published balance sheet… …   Wikipedia

  • Valuation (finance) — Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis · Cash flow management · Chart of accounts  …   Wikipedia

  • accounting — An act or a system of making up or settling accounts, consisting of a statement of account with debits and credits arising from relationship of parties. State ex rel. King v. Harvey, Miss., 214 So.2d 817, 819. Rendition of an account, either… …   Black's law dictionary

  • Valuation Office Agency — The Valuation Office Agency is a government body in the United Kingdom. It is an executive agency of Her Majesty s Revenue and Customs. The Agency values properties for the purpose of Council Tax and for non domestic rates in England and Wales… …   Wikipedia

  • valuation — the process of appraising the worth of property according to some recognised criteria. Glossary of Business Terms Determination of the value of a company s stock based on earnings and the market value of assets. Bloomberg Financial Dictionary To… …   Financial and business terms

  • accounting — /euh kown ting/, n. 1. the theory and system of setting up, maintaining, and auditing the books of a firm; art of analyzing the financial position and operating results of a business house from a study of its sales, purchases, overhead, etc.… …   Universalium

  • accounting standard — A definitive standard for financial accounting and reporting established in the form of a Statement of Standard Accounting Practice (SSAP) issued by the Accounting Standards Committee or, since 1990, a Financial Reporting Standard (FRS) issued by …   Accounting dictionary

  • accounting plan — A detailed accounting guide provided by a number of European countries, such as France and Spain. The guide gives definitions of accounting terms, rules for valuation and measurement, model financial statements, and a chart of accounts. This… …   Accounting dictionary

  • Intellectual property valuation — Valuation is considered as one of the most critical areas in finance; it plays a key role in many areas of finance such as buy/sell, solvency, merger and acquisition. Furthermore, intellectual property (IP) valuation is considered as one of the… …   Wikipedia

  • Clean surplus accounting — method provides elements of a forecasting model that gives price as a function of earnings, expected returns, and change in book value.[1][2] Clean surplus accounting is calculated by not including transactions with shareholders (such as… …   Wikipedia


Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.