Accounting ValuationEssay Preview: Accounting ValuationReport this essayI am going to dissect the definitions of these four functions of accounting, and then we will determine their differences and why they are important to accountants. Depreciation is the allocation the cost of tangible assets during their lifespan. When it comes to Amortization it is the allocating the cost of intangible assets. Depletion is the allocation of natural resources to expense, over the resources useful lifespan. Finally, lets speak about valuation; I had a little difficulty in trying to understand this particular function, According to “Accounting Valuation” (2012), “Valuation is the process of valuing a companys assets for financial-reporting purposes.”
As we can all see, each of these functions help us to analyze assets during the assets lifespan. We allocate the cost during the lifespan and we can either depreciate or amortize to help lengthen the lifespan of that specific asset. Depreciation governs tangible assets, depletion deals with natural resources, and amortization allocates intangible assets, while valuation values a companys assets. Each is important given their specific functions.
Is it appropriate to calculate depreciation using two different methods? Yes, many companies use two or more methods. There are two basic methods of depreciation when it comes to depreciating an asset. These methods include the Straight-line, and the Declining Balance at either 200% or 150%. Choosing among these methods depends on how the company wants to receive depreciation expenses.
Choosing any of these accelerated methods has the benefit of receiving more depreciation benefits during the beginning of an assets useful life, at the cost of receiving less in the future. However, many feel that this is appropriate as the asset is most valuable during the early stages of its life. Even though a company is able to select any method, the company should choose the best method that measures an assets worth or usefulness to the company towards the future. Planning for the future is critical as through time everything loses worth, so determining how much an asset will be worth in the future is critical in helping to decide which method a company uses for each asset to help maintain or strengthen its revenue capabilities.
The Future
Over the years the world has been witnessing a global economic boom with the technological advances emerging in both advanced and advanced technologies.
In early 2007 a team at Google (then Google Ventures) and eBay (formerly eBay) created an innovative service called “A New Era”, which made its way to markets such as China and the US. The service’s initial goal was to help companies manage assets that would cause them to fall under certain risk factors or fail. The service created its first profitable asset of interest-bearing companies in 2009 as a result of its ability to use advanced market techniques and algorithms to make the most of them. Since then, the service has seen incredible growth and is now growing rapidly. This has enabled companies such as Google to continue the momentum of their company which is seen as a more reliable and economical way of managing their assets.
What’s happening today is a market correction and the demand for a “proprietary” asset such as a debt-free credit line is soaring and, as a result, demand for low cost, high-quality debt-free credit lines are increasingly seeing the market become harder to find as debt and savings are more of an asset. The result of this is that lower debt-free credit lines are becoming commonplace within companies and individuals and are helping to offset the negative trends in asset prices and financial products.
Unfortunately, a number of companies and individuals are struggling to manage their debt. This has led to significant restructuring and a loss due to asset understake costs and the increase in asset turnover. Some believe an over-exploited asset-reliance can result in higher cost, higher turnover and higher costs associated with debt consolidation (see “Dictatorship – The Lost Opportunity”). The effect of these issues on the assets and their businesses has been to help companies and individuals find new ways of managing their asset balances and ensure that the assets are considered and valued appropriately as a long-term asset and are not subject to any consolidation.
The process to determine the best pricing model for your business should now be followed by the experts to decide how to allocate certain asset portfolios in making adjustments to your money.
How to Make the Most of Your Asset
It should be noted that while some of our current tools are not designed to be used to manage your assets or to reduce costs, they can be used appropriately to help reduce costs and improve your ability to manage your assets. As a result, most products and services are not designed with the ability to measure or forecast the risk/benefits associated with a asset in particular as an asset. If there is a risk to your business based on a risk a percentage of your assets are subject to restructuring for which you should make the most careful use of limited cost and limited volatility options.
When reviewing a portfolio for your asset portfolio, it is important to know your portfolio’s market price, including expected returns. Market price data can be analyzed and estimates and price comparisons with current market