Value of assets (significance)

[lulur]

Hi ALL!!!

In our policy is a phrase "value assets".

Tell me please this phrase means cost of fixed assets when we buy them or cost after depreciation?

 

[kirby]

Not enough information to work with. Can you quote more of the text?

 

[lulur]

Ok.

"Approval Authorizations.
Asset disposals approval authorization levels are shown in Attachment.

Authorization required

Value of Asset
(Higher of book&
Market values)

$1 up to $10,000

$10,000 up to ... "

 

[kirby]

Your policy defines the meaning for you. it says "value of assets" = the higher of book or market values". SO - before you dispose of an asset it requires you to get the market value of that asset in addition to the book value which you already have. This is a tough requirement for most fixed assets as market values are not readily available usually.