LF8 Asset Valuation

Two companies buy the same machine and carry it on the balance sheet at different values, both entirely correct. Explaining that takes more than a formula: acquisition cost under section 255 of the German Commercial Code, scheduled and unscheduled depreciation, and the lower of cost or market principle in its moderate and its strict form. Eight topics work through these questions for fixed and current assets, each with an explanation, exercises and a mini quiz. Four calculators and decision tools take over where otherwise only the pocket calculator runs: an asset sorter, an acquisition cost calculator, a depreciation calculator and a lower of cost decision aid. It closes with the valuation principles of section 252, from which the individual rules follow.