Tangible assets

Investors, however, like companies that have large tangible assets, because they think they have a better chance of getting their money back should the company become bankrupt. The tangible assets are the undepreciated assets of the company. So if a company is interested in selling bonds, it looks better if it has depreciated its assets slowly. As a result, some companies keep dual books-one for the public and the other for the Internal Revenue Service. There is nothing illegal about this. The capitalized cost minus the amount that has been depreciated is called the book value of the asset. This may be above, below, or the same as its resale value. 

People use the safety deposit box services provided by the banks to secure a tangible asset from loss or theft. The bank provides its customer with a safety deposit box with a lock and the only key for the lock. The bank keeps the safety deposit box in the vault as the custodian without knowing what is kept in the box. Only the owner of the safety deposit box knows the content of the box and has access to the content, while the bank safeguards the box itself. As a result the individual s belongings are secured in the locked box that only the owner has the key for, and the box is secured in the bank s vault that only the vault keeper at the bank has access to. 

Depreciation The process of allocating the cost of tangible assets to operations over the expected life of the asset. Depreciation represents the gradual... 

The e q)ected amoimt of damage each year (also called the flood risk) is calculated by multiplying the yearly flood probability and the damage caused by flooding. The latter increases over time due to economic growth, which increases the value of tangible assets within the flood prone areas. It is assumed that the economic growth can be written as an exponential function ... 

Assets are classified as current assets and fixed assets. The essential difference between the two is that fixed assets contribute to the company s productive capacity while current assets are items which are bought and sold in the course of its day-to-day trading activities. The fixed assets are further subdivided into investments (e.g. shares in other companies), tangible assets (assets which have some physical existence) and intangible assets (assets such as copyrights in literary works, which have no physical existence). 

The problem which arose in these two cases was that in neither Oiford v Moss nor R v Absolom was the owner of the information permanently deprived of a tangible asset, such as a piece of paper. If this had been the case there could have been a successful prosecution for theft of that asset. But again the emphasis of the law was on the tangible asset, such as the storage medium. Information in itself is not protected by the law relating to theft, which concentrates on the nineteenth century notions of property and has not been adapted to protect the valuable intangible cormnodities of the computer age. 

The Principal Financial Officer shall ensure that complete and accurate records are maintained for all OPCW non-expendable property with a purchase or acquisition value of EUR 1,000 or more per unit and with a serviceable life of more than one year. Subject to these conditions, nonexpendable property includes inspection and laboratory equipment, information systems equipment, furniture, motor vehicles, and other tangible assets as may be purchased by the OPCW. The records shall document the value of equipment and other property purchased, and the projected serviceable life span of each asset. Attractive non-expendable items with a value below EUR 1,000 per unit shall also be subject to similar control. Financial accounting for non-expendable property will be in accordance with Financial Regulation 11.1 and Financial Rule 11.1.03. 

A good reference line of key performance indicators of a supply chain is the Balanced Scorecard by Kaplan and Norton (1996). Kaplan and Norton argue that a valuation of intangible assets and company capabilities would be especially helpful since, for information age companies, these assets are more critical to success than traditional physical and tangible assets . The Balanced Scorecard retains traditional financial measures, customer services and resource utilization (internal business process) and includes additional measures for learning (people) and growth (innovation). This approach complements measures of past performance with drivers for future development. 

Auto loan pools were some of the earliest to be securitized in the ABS market and still remain a major segment of the U.S. market. Investors have been attracted to the high asset quality involved and fact that that the vehicle offers an easily sellable, tangible asset in the case of obligor default. In addition, since a car is seen as an essential purchase and a short loan exposure (three to flve years) provides a disincentive to finance, no real prepayment culture exists. Prepayment speed is extremely stable and losses are relatively low, particularly in the prime sector. 

Rarely, all of the information needed for analysis is made obvious on the balance sheet, income statement, or statement of cash flows. Instead, it may require closer examination to find the necessary information. The numbers reported in the financial statements may not be exactly what is needed for financial analysis and day-to-day decision making by those in supply chain and operations because of the assumptions made by a company s financial experts. Accountants have the liberty to make assumptions based on historical trends when preparing financial statements. Examples of these assumptions include the amount of accounts receivable will not be collected, or what liabilities exist, such as tax, pension, and legal liabilities. Accountants also make assumptions about how to value tangible assets, how to value brand and intangible assets, and an amount to allocate to goodwill. As a result of these assumptions, financial results can vary widely. 

For an accurate perception of invested capital, it is important to know how certain assets are treated on the balance sheet and then on the income statement through a depreciation expense. When a company obtains tangible assets such as PP E, the asset is capitalized on the balance sheet and depreciated over time. Intangible assets such as a brand name, a distribution network, or a patent are expensed in whole on the income statement immediately. Companies with significant amounts of intangible assets will find that their invested capital will be underestimated, leading to an artificially high or overstated ROIC. 

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