A definitive set of criteria used to guide financial accounting and reporting practices globally, formulated by various authoritative bodies such as FASB, IASB, and FRC.
Adjusting events, also known as post-balance-sheet events, occur between the balance-sheet date and the date on which financial statements are approved, providing additional evidence of conditions existing at the balance-sheet date.
An appraisal report documents the findings of an appraisal engagement, summarizing the valuation of a property or asset. Different report formats include restricted, summary, and self-contained reports, compliant with the Uniform Standards of Professional Appraisal Practice (USPAP).
An appraiser is a person qualified to estimate the value of a business, real property, or personal property. The profession requires knowledge, expertise, and, often, certification.
To evaluate or appraise the value of an asset or property for various purposes, such as taxation, sale, or insurance.
An asset bubble refers to the inflationary valuation of asset prices resulting from excess demand, often leading to a sudden market collapse.
A Balance Sheet Audit focuses specifically on verifying the existence, ownership, valuation, and presentation of a company's assets and liabilities as stated in the balance sheet.
The Blended Value refers to the average value of tendered stock and residual stock in a self-tender offer. It provides a sense of the overall valuation effectiveness of such tenders.
The closing price, also known as the closing quote, refers to the price at which the last transaction of a trading session on an organized securities exchange occurs. This price is critical for valuation purposes in various financial contexts, such as charitable contributions and estates.
Commodity money is a type of currency that is valued for the material it is made from, such as gold coins, where the value of the money is typically the value of the commodity itself, rather than the denomination stamped on it.
Comparables, often abbreviated as COMPS, are an essential element in real estate appraisal and valuation processes. They refer to the comparability of properties with similar characteristics, used primarily to determine the market value of a subject property.
In continuously contemporary accounting, Current Cash Equivalent (CCE) refers to the measure of assets and liabilities in terms of their current cash value.
Discounting refers to the application of discount factors to cash flow projections in discounted cash flow analysis and the process of selling a bill of exchange before its maturity at a discounted price.
A comprehensive metric frequently used to measure the value of a business in its entirety, incorporating both equity and debt.
A detailed overview of equivalent units, explaining how unfinished units of production at the end of a period are measured and valued.
An assumption within an appraisal that is so essential that the value opinion would be erroneous if the assumption proved to be false.
A Hypothetical Condition is a situation assumed to be true for the purposes of analysis or appraisal, even though it is contrary to known facts.
An income-generating unit (IGU) is a distinct segment within a business or an investment that is capable of generating revenue independently. Understanding IGUs is crucial for effective financial reporting and valuation.
Investment value represents the estimated worth of an investment to a specific individual or institutional investor. It can differ from market value based on the unique circumstances and requirements of the investor.
The Market-to-Book Ratio (M/B ratio) is a financial valuation metric used to compare a company's current market price to its book value, providing insights into how the market values the firm's assets.
An accounting method where the most recently acquired or produced items are used first for financial measurement and inventory management.
Objective Value is a term used to describe the value of an asset as determined by market forces, rather than subjective measures like personal opinions or intrinsic valuations.
Property refers to every valuable right or interest that is subject to ownership, has an exchangeable value, or adds to one's wealth or estate. It includes both physical objects and intangible rights, covering a broad range of items and interests that can be owned, used, and transferred.
Separable assets and liabilities refer to the specific assets and liabilities of a business that can be clearly distinguished from other assets and liabilities. This distinction is crucial when assessing the financial health of a company or when conducting valuations, such as during a merger or acquisition.
The unit of account is a fundamental concept in economics and accounting that enables the quantification and comparison of the value of goods, services, and transactions, as well as the standardization of a country's currency.
Valuation is the process of determining the current worth or price of an asset or a company. This act is pivotal in finance and investing, influencing decisions ranging from purchasing securities to compliance with regulations.
