Accounting Valuation


DEFINITION of 'Accounting Valuation'

The process of valuing a company's assets for financial-reporting purposes. Several accounting-valuation methods are used while preparing financial statements in order to value assets. Many valuation methods are stipulated by accounting rules, such as the need to use an accepted options model to value the options that a company grants to employees. Other assets are valued simply by the price paid, such as real estate.

BREAKING DOWN 'Accounting Valuation'

Accounting valuation is important, because the value of assets on a company's financial statements needs to be reliable. Analysis of this valuation is just as important as the valuation itself. Some assets, such as real estate, which is carried at cost less depreciation, can be carried on the balance sheet at far from their true value.

  1. Attest Function

    The process of independent review of the validity of data audited ...
  2. National Association Of Certified ...

    A group of business professionals that provide valuation and ...
  3. Audit

    1. An unbiased examination and evaluation of the financial statements ...
  4. Accounting

    The systematic and comprehensive recording of financial transactions ...
  5. International Accounting Standards ...

    An older set of standards stating how particular types of transactions ...
  6. Certified Public Accountant - CPA

    A designation given by the American Institute of Certified Public ...
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  1. What's the difference between book and market value?

    Book value is the price paid for a particular asset. This price never changes so long as you own the asset. On the other ... Read Full Answer >>
  2. What is the difference between principles-based accounting and rules-based accounting?

    Almost all companies are required to prepare their financial statements as set out by the Financial Accounting Standards ... Read Full Answer >>
  3. What is a profit and loss (P&L) statement and why do companies publish them?

    A profit and loss (P&L) statement, or balance sheet, is essentially a snapshot of a company's financial activity for ... Read Full Answer >>
  4. How do dividends affect the balance sheet?

    Dividends paid in cash affect a company's balance sheet by decreasing the company's cash account on the asset side and decreasing ... Read Full Answer >>
  5. Who actually declares a dividend?

    It is a company's board of directors who actually declares a dividend. The declaration date is the first of four important ... Read Full Answer >>
  6. Are dividends considered an expense?

    Cash or stock dividends distributed to shareholders are not considered an expense on a company's income statement. Stock ... Read Full Answer >>

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