Hi sir! I’m so confused with all the kinds of values in f7. So I decided to seek help from you:). Can you pls explain me each kind of values listed down here? I think I knw most of these but I’m just confused. So I need a simple definition to each one of these so that I don’t get confused anymore and plus if I have forgotten something pls list down that too. Thank you soo much :))…
1.present value
2.market value
3.fair value
4.realisable value
6.carrying value
7.entity specific value
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Confused with VALUES!
Present value is the today value of a future payment or future receipt. It is arrived at by discounting future cash flows to find the today values.
Market value is the price that you can buy or sell an asset for today on the open market between a willing buyer and a willing seller in an arms length transaction
Ok?
Uh..ok. Thanks alot for that, but wht abt the rest?
Abhinandh, you can't ask me "What rest"!!!
Tell me what "rest" you want me to explain and I will but I don't know whether to go back to net book value, tax written down value, net realizable value .... You've got to give me a sporting chance of guessing what you want and I'll try to help.
But "What rest?" doesn't do it for me I'm sorry to say
:-(
But sir, I've listed down 7 of them above.do you see them? because I do. You only explained 1and 2. Thats why I asked 'wht abt the rest'.. Anyways, I'll list them down again for you.
1.present value
2.market value
3.fair value
4.realisable value
6.carrying value
7.entity specific value
Thank you for your time.
You are so correct and I apologies for not seeing them!
They are not in line with the previous 2 and i simply never saw them
However, I do take issue with your claim that there are seven
The last one may be numbered 7 but you seem to have lost number 5
Fair value is in IFRS13 and is explained in the free course notes on this site. There are too many sub-divisions for me to type them all out here. Why not check out the F7 course notes - from memory probably chapter 7 or 8 and see what is in there about fair values
Realizable value is simply the amount that you can sell an asset for realizing neither profit nor loss in the year of sale in an arms length transaction in an entice market
Carrying value is the amount at which an asset is "carried" in the financial records of a company that is it is the book value of that asset
Entity specific relates to an asset that is only of any use to the company that owns that asset. No other company could possibly even want that asset or one similar
Is that better and, once again, I'm sorry for missing most of your first post
Thanks alot sir for the help sir and i apologise for messing up with the numbers. Yeah,i'll sure chk it in the course notes too. Once again thank you for your time.well explained! :)
You're welcome
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