Valuation of Fixed Assets Homework Solutions

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A fixed asset is commonly known as a tangible asset which is used by a firm for a long period to generate earnings. It is non current so not easily converts to cash and cannot be sold in one business year.It is mainly used in organization for production, the supply of products and services,to lease out the property to other etc. The subject topic refers to the natural resource like forests, land, plants and commercial resource several factories, plant, vehicle, bulging, machinates etc.

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As it is made for generating funds, enhancing production and providing services, so it has a great significance.Β Β  Hence, a proper valuation is necessary to understand the financial status of an organization. It is an important part of finance and students have to do lots of assignments on this subject topic. For this reason they often require an authentic Valuation of Fixed Assets Assignment Solutions from an expert end.

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It’s necessity in the field of finance

It is done first by the internal managerial team of an organization but latter a critical and analytical test is made by the outsider auditing team. For details information about this process to bold your concept you have to follow our Valuation of Fixed Assets Homework Solutions.

Though It is mainly required for making a true financial report there are other purposes involved too and few of them are listed below for your kind information –

  • To store a huge amount of fund for business growth
  • To present fair market value of the assets
  • To get maximum resale value of the assets
  • To give a fair and clear idea about the company status to the shareholder and other investors to earn their trust.
  • To get an easy loan against the property from bank and other financers.
  • To figure out the depreciation value of the property.

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The general methods are

Assets are of different types, their uses and values to different from each other so the unusual process of revaluation can be applied. Some of them are discussed below –

  • Cost value method is the most simple and easiest way and parches amount does it.
  • Standard cost method is applicable for the organization who fixes a standard cost of the property depending on the experiences. So in those case the revaluation of properties are made depending on that costΒ  amount
  • Average cost procedure is followed where wealth cannot be separated from each other. In this situation organization first calculate the average cost price of the property then make a valuation of the property on the basis of that average price. Students if you are bit confused about all these then can take help from our Valuation of Fixed Assets Homework Solutions.
  • Market price procedure depends on the market price of the assets. As often market price fluctuates due to several reasons hence, it is really difficult to evaluate the property.


  • Stock method makes the valuation of property on the basis of stock amount of that organization.

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