What Types Of Asset Valuation Methods Are Useful For Finances, Stocks, Bonds, And Financial Statements
Response 5 As a potential CFO, valuing assets is a crucial need for not-for-profit health care organizations (NFP). A well-managed health care organization with auditors, management, and CFO would ensure the assets, stocks, bonds, tax returns, and financial statements are being valued thoroughly and accurately. First of all, fair value accounting can be used to determine by scrutinizing at published stock market trades. (GAAP) requires for assets, stocks, and bonds to be valued directly on fair value. Historical cost is a recommended valuation because it is used as a basis for tax returns and financial statements. If the (NFP) wanted another alternative for the valuation of assets to measure then net realizable value would suffice. For the (NFP) it can be used for comparison of what to sell it for, such as land for instance. However, the big handicap of the net realizable value method is that it is based on someone’s subjective estimate of what the asset could be sold for, (Finkler, S.A., Ward, D.M. & Calabrese, I.D. 2013). Fair value is a beneficial method to record financial assets of stocks and bonds at their current value.
Question 1 The most effective to keep track of an organization’s financial history is through journal entries and…