What are the main methods of asset valuation?

Open Market Value. It refers to the value that assets should realize in the open market, that is, the rational buying and selling parties finally reach an agreement in a market with equal status, information disclosure, transaction costs and time costs are low enough**.

Liquidation value. Refers to the time when the asset is restricted from auction in an abnormal market**.

Replacement value. It refers to the cost of replacing the asset according to the function and keeping the asset in use under the current market conditions as the asset appraisal value. It is an evaluation of an asset from an input perspective.

Investment value. The value of an investment is determined based on the profitability of the asset. It reflects the reflection of the appraised value on the future profitability of the asset.

Extended Materials: 1. Methods and calculation formulas for asset valuation.

Static Present Value of Earnings Method. Revaluation value of the enterprise or asset = the present value of the annual earnings of the enterprise or asset calculated statically The social benchmark rate of return The present value of the annual earnings of the enterprise or asset calculated statically = the sum of the earnings over the expected life The expected number of years.

Dynamic Present Value of Earnings Method. Revaluation value of a business or asset = present value of annual earnings of a business (or asset) calculated dynamically Social benchmark rate of return.

2. The basic elements of asset valuation.

Asset appraisal consists of six basic elements, namely, the purpose of asset valuation, the object of valuation, the appraiser, the valuation standard, the appraisal procedure and the appraisal method. Asset appraisal refers to the appraisal agency according to a specific purpose, in accordance with the objective economic laws and fair standards, in accordance with the statutory standards and procedures, the use of scientific methods, the current assessment and estimation of assets.

3. What form the asset can be?

There are two forms of assets: tangible assets and intangible assets. Tangible assets are assets that exist in the form of specific material products, including production tangible assets and non-production tangible assets. Intangible assets are identifiable non-monetary assets owned or controlled by an enterprise that do not have a physical form.

4. The difference between assets and capital.

The definition is different. Capital is a general term for various socio-economic resources for human beings to create material and spiritual wealth. Capital can be divided into institutional or social production relations capital, and its promotion or appreciation is realized by changes in social and political thought.

Assets refer to the resources formed by past transactions or events of the enterprise, owned or controlled by the enterprise, and expected to bring economic benefits to the enterprise. Resources that do not bring economic benefits cannot be used as assets and are the rights of enterprises.

The characteristics are different. The main characteristics of capital are: capital is value that can bring surplus value; Capital is a movement; Capital is a historical category.

The main characteristics of an asset are: an asset is a resource formed by past transactions or events; The assets must be owned or controlled by the business; Assets are expected to bring economic benefits to the business.

The main methods of asset valuation are as follows:

Market Comparison Method: Determines the market value of an asset to be evaluated based on the transactions of similar or similar assets in the market**. The advantage of the market comparison method is that it is simple and easy to understand and has a wide range of applications.

The disadvantage is that comparable market data is required, and there may be differences in trading in different markets**.

Cost method: The market value of the asset to be evaluated is determined based on the cost of rebuilding the asset, minus the depreciation and wear and tear that has already occurred. The cost method applies to physical assets such as real estate, machinery and equipment, etc.

However, the cost method cannot reflect the impact of factors such as market supply and demand and economic environment on the value of assets.

Income approach: The market value of the asset to be evaluated is determined based on its profitability and future cash flows. The income method applies to income-generating assets, such as investment properties,**, etc.

However, the income method requires certain ** and inference, and the uncertainty of ** will have an impact on the evaluation results.

Depreciation method: The net value of an asset is determined based on the degree of physical wear and tear and technical obsolescence of the asset. The depreciation method applies to physical assets such as real estate, machinery and equipment, etc. However, the depreciation method does not reflect the impact of factors such as market supply and demand and the economic environment on the value of assets.

Comprehensive method: Comprehensively consider the advantages and disadvantages of the above evaluation methods, and select the appropriate method for evaluation. An integrated approach can overcome the limitations of a single assessment method, but requires more data and analysis, and the assessment process can be complex.

The above valuation methods can be used separately or in combination, and the appropriate method can be selected according to the type of asset and the purpose of the valuation.

The main methods of asset valuation include the present value of income method, the replacement cost method, the current market price method, the liquidation method, etc., each method can be selected according to different types of assets or needs: 1. The present value of income method is mainly applicable to long-term assets that have been lost due to use. It refers to the present value calculated at a reasonable conversion rate of the expected annual or monthly income of the remaining life of the assessee as the valuation method for estimating the present value of the asset; 2. The replacement cost method is mostly applicable to assets with large market fluctuations.

refers to the valuation method of subtracting the corresponding depreciation from the replacement cost of the new state; 3. The current ** method, like the replacement cost method, is mostly applicable to assets with large market price fluctuations. Through market research, one or more identical or similar assets are selected as comparisons, and the current market value of the assets is assessed as the valuation method for estimating the present value of the asset; 4. The liquidation method refers to the method of assessing the revaluation value based on the realizable value of the assets of the enterprise at the time of liquidation.

Asset appraisal is an undergraduate major in ordinary colleges and universities, and it belongs to the business administration major. This major cultivates application-oriented and interdisciplinary professionals who have knowledge of economics, management, law, asset appraisal, humanistic spirit, scientific literacy and integrity, and can be engaged in asset management and financial taxation in asset management departments, land management departments or enterprises and institutions, financial investment companies, real estate development institutions, etc.

Legal basis] Asset Appraisal Law of the People's Republic of China

Article 2 The term "asset appraisal" (hereinafter referred to as "appraisal") as used in this Law refers to the professional service conduct of appraisal institutions and their appraisal professionals to assess and estimate immovable property, movable property, intangible assets, enterprise value, asset losses or other economic rights and interests and issue appraisal reports according to their entrustment. Article 3 If a natural person, legal person or other organization needs to determine the value of the appraisal object, it may voluntarily entrust an appraisal agency to conduct an assessment.

Where matters such as state-owned assets or public interests are involved and need to be assessed by laws and administrative regulations (hereinafter referred to as "statutory assessments"), an assessment agency shall be entrusted with an assessment in accordance with law. Article 4 Assessment institutions and their assessment professionals shall comply with laws, administrative regulations and assessment standards in carrying out their business, and follow the principles of independence, objectivity and impartiality.

Appraisal institutions and their appraisal professionals conduct business in accordance with the law and are protected by law.

Legal analysis: The main methods of asset valuation include the present value of income method, the replacement cost method, the current market value method, the liquidation method, etc., each method can be selected according to different types of assets or needs

1. The present value of income method is mainly applicable to long-term assets that have been lost due to use. It refers to the present value calculated at a reasonable conversion rate of the expected annual or monthly income of the remaining life of the assessee as the valuation method for estimating the present value of the asset;

2. The replacement cost method is mostly applicable to assets with large market fluctuations. It refers to the valuation method of subtracting the corresponding depreciation from the cost of the new state of mitigation and resetting.

3. The current ** method, like the replacement cost method, is mostly applicable to assets with large market price fluctuations. Through market research, one or more identical or similar assets are selected as comparisons, and the current market value of the assets is assessed as the valuation method for estimating the present value of the asset;

4. The liquidation method refers to the method of assessing the revaluation value based on the realizable value of the assets of the enterprise at the time of liquidation.

Legal basis: "Asset Appraisal Law of the People's Republic of China" Article 2 The term "asset appraisal" (hereinafter referred to as "appraisal") in this law refers to the professional service behavior of appraisal institutions and their appraisal professionals to assess and estimate immovable property, movable property, intangible assets, enterprise value, asset losses or other economic rights and interests according to the entrustment, and issue appraisal reports.

Methods of asset valuation: 1. The present value of income method, also known as the income restoration method and the income capitalization method; 2. Replacement cost method; 3. The current market price method; 4. Liquidation method.

6. After the completion of the process, the electronic version will be sent to the applicant. The paper version of the assessment report is very convenient to mail in hand

According to the different analysis principles and technical routes, it can be summarized into three basic types, or three basic methods, namely the market method, the cost method and the income method.

1. The market method is a general term for various evaluation and valuation techniques that use the recent transactions of the same or similar assets in the market to estimate the value of assets through direct comparison or analogy analysis.

2. The income method is a general term for various valuation methods to judge the value of assets by estimating the present value of the expected future returns of the assets to be evaluated.

3. Cost method refers to the general term of various valuation methods that first estimate the replacement cost of the assessed asset, then estimate the various depreciating factors existing in the assessed asset, and deduct it from the replacement into Xiaoyanben to obtain the value of the assessed asset.

It is generally divided into: market method, income method, and cost method.

On the basis of the above three methods, there are many different methods according to the nature of the assessment object.

For example: land: market method, income method, cost method, hypothetical development method (backcalculation of income method), benchmark land price method (market method variant), route price method (market method variant).

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Questions. Can personal assets be assessed at cost or value based on market value and liquidation value.

OK. Individual assets can be assessed based on five different costs and values, including historical cost, cost after depreciation, liquidation value, market value, replacement value, etc.

Questions. Okay thank you.

Historical cost refers to the initial purchase of an asset**. Cost after depreciation is historical cost minus impairment due to wear and tear. Liquidation value is the market after deducting the transaction fees and taxes that would be paid to sell the asset.

Market value is the amount that someone else is willing to pay for the asset in an arm's length transaction. Replacement cost refers to the re-purchase of this asset under new conditions**.

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