Asset is an element of the organization....

2. Asset mean resources , things or
rights of value owned by a business
undertaking.

3. “Tangible objects or
intangible rights owned
by an enterprise and
carrying probable future
benefits”

4. This means that the asset has capacity to
provide services or benefits to the enterprise
that use them.
it can used to produce or otherwise
increase the value of other assets.
It can also used to settle liabilities .

6. Income determination :
Determination of financial position :
Managerial decisions :

7. Asset
valuation
methods

8. Historical cost
A measure of value used in
accounting in which the
price of an asset on the
balance sheet is based on
its nominal or original
cost when acquired by the
company.

9. 2000-01 yr :-
20 Crore
2010-11yr :-
40 Crore

10. B/S of 2000-01
liabilities Amount Assets Amount
Fixed assets 20 Crore
B/S of 2010-011
liabilities Amount Assets Amount
Fixed assets 20 Crore

11. Replacement cost
The cost to replace the assets of a
company or a property of the same or equal
value. The replacement cost asset of a
company could be a building, machinery,
stock , accounts receivable or liens. This
cost can change depending on changes in
market value.

12. 2000-01 yr :-
20 Crore
2010-11yr :-
40 Crore

13. B/S of 2000-01
liabilities Amount Assets Amount
Fixed assets 20 Crore
B/S of 2010-011
liabilities Amount Assets Amount
Fixed assets 40 Crore