Market Value is the estimated amount for which an asset should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction, after proper marketing and where each party had acted knowledgeably, prudently and without compulsion. |
It is the value arrived at when the seller may or may not have sufficient time to find a purchaser and being forced to sell the assets on as-is where-is basis. |
Assets are revalued by taking into account any accumulating losses in terms of depreciation and impairment. These are carried out by an enterprise at regular intervals |
Valuation of assets is required to fix-up the Sum-insured for Fire, Engineering and Miscellaneous class of Insurance policies. |
Asset disposal is the removal of a long-term asset from the company’s accounting records. It is an important concept because capital assets are essential to successful business operations. Moreover, proper accounting of the disposal of an asset is critical to maintaining updated and clean accounting records. |
I. The asset disposal may be a result of several events:
II. For the |
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