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Net assets based valuation

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Net assets based valuation

  • This topic has 1 reply, 2 voices, and was last updated 2 years ago by AvatarIAW3005.
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  • October 16, 2023 at 11:16 am #693479
    Avatarkrrish2005
    Participant
    • Topics: 138
    • Replies: 229
    • ☆☆☆

    Sir i understand that if the method used is nrv or replacement based valuation, any intangible asset in sofp should not be included unless it has a market value or replacement cost(which is highly unlikely to be accurately assesed..RIGHT???)
    But what if we are given goodwill or any other intangible in sofp and the question asks net book value based valuation….and the intangible do not have a market value
    Do we include such intangible in net book value based valuation?

    October 16, 2023 at 5:08 pm #693540
    AvatarIAW3005
    Keymaster
    • Topics: 4
    • Replies: 1616
    • ☆☆☆☆☆

    This is not examined to my knowledge in the FM syllabus ( It is in AFM )

    Just so you know that valuing intangible asses such as intellectual capital is not an exact science. The most appropriate method would be to value the assets based on realisable value.

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