What is the real value of those assets? Practical applications of current valuation

Abstract

AbstractAlthough there is increased interest in the use of current value information in published financial statements, particularly in the case of financial instruments and impaired assets, the basic problems of current value and replacement cost accounting have not been solved. FAS 33 and ASR 190 were noble experiments that failed, primarily because they asked for “what if” information and did not focus on cash flows. This article describes the various definitions of “value” that are used by appraisers in their work for clients, and recommends a useful approach for financial executives to develop useful value information.