Value Flashcards
Different ways can value something. 7
Historic costs broken down
Depreciated historic cost
Like for like replacement cost/current state price approach
New cost/new state price approach
Benchmark cost
Future potential
Actual price paid
Historic costs broken down
price originally paid for individual assets within an org
Depreciated historic cost
Price originally paid for individual assets within the org reduced to reflect the level have been used eg taking into account wear and tear
Like for like replacement cost/ current state price approach
Reflects current price of each indiv asset of an asset in its current state if they were to be sold indivually
New state price approach
Price you’d have to to expect to pay to replace indiv assets of an org with new versions
Benchmark cost
Price of similar assets
Future potential approach
Reflects potential additional value that could be generated when combining all of orgs indiv assets and putting them to good use
Actual price paid approach
Price you paid is the value
