value
The current value (or daily value ) describes the value of an economic property at a specified point in time and thus takes the time component into account when determining the value .
Fair value in accounting
The fair value of an asset (an asset or taxable business assets ) is the acquisition value less the sum of the previous scheduled depreciation . Since the depreciable fixed assets ( e.g. buildings and machines ) lose their value over time , a certain amount of money ( depreciation ) is written off (deducted) annually for accounting and cost accounting .
If the asset is valued over time, for example through a repair or renovation, a value adjustment must be made and the book value increased. The value of the correction is made up of the work done (this can also have been done by the company's own employees) and the value of the material used.
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In the International Financial Reporting Standards , the German version of the “fair value” is the translation for the fair value (see also International Accounting Standard 39 ).
Current value in insurance
The term current value is also used in insurance , here it is understood to be the value as new of a thing minus a sum of money for age, use and wear and tear. In the case of surrender values in unit-linked life insurance in particular, reference is made to the current market value in the Insurance Contract Act (VVG) ( Section 169 (4) VVG). In the legal justification for this special case, it is equated with the common value in tax law , which corresponds to a prospective reserve capital with market-conform assumptions.
In the commercial law regulations for insurance, the fair value in connection with the valuation of investments denotes the market value or a correspondingly modeled value ( Section 341 (4), Section 341d HGB and Section 54 ff. RechVersV ).
Fair value of a warrant
In the case of stock options , the fair value is the difference between the warrant money price and the intrinsic value of the option. The amount of the time value of warrants therefore particularly depends on whether the warrant is quoted in the money , at the money or out of the money . The fair value is highest when the warrant is quoted at the money , i.e. the price of the underlying is exactly the same as the exercise price. If the warrant moves further into the money , the intrinsic value grows to a greater extent than the current value is reduced. If the warrant moves out of the money , the warrant price falls due to the then falling market value.
It is always positive (except for market inefficiencies) and decreases as the remaining term decreases. It is, as it were, an expression of the chance or also the risk that the price of an underlying asset may fall or rise over time.
Current value of a motor vehicle
The term “fair value” is a superordinate term in connection with the valuation of a vehicle and does not say anything about whether the sales value or the replacement value is meant; it is better to avoid it. The jurisprudence mostly uses it in the sense of the replacement value . Different questions about the value of a motor vehicle require different value definitions - see also market value (motor vehicle) - be it because a vehicle is to be valued in the course of customs clearance or inheritance or insolvency, or because there is damage worth repairing, but that Vehicle is sold unrepaired or repairs are to be carried out in-house. In the event of an economic total loss , the question of the value of the wreck also arises.
Daily value and daily value principle
A daily value can be derived from both the factor market ( replacement costs on the balance sheet date) and the sales market ( sales price on the balance sheet date). The daily value principle is based on it as a valuation principle, according to which the valuation of the assets must be based on a value derived from the market on the valuation date.
literature
- Literature on current value in the catalog of the German National Library
Individual evidence
- ^ Paul Nechvatal / Bernhard Wielke: Definitions of the value of a motor vehicle . In: experts . Volume 2, 2011, pp. 86–87 ( online [PDF; 751 kB ]).
- ^ Robert Fucik / Franz Hartl / Horst Schlosser / Bernhard Wielke (eds.): Handbook of the traffic accident, part 2 . Manz-Verlag, 2008, p. 255 ff .
- ↑ Wolfgang Lück (Ed.), Lexicon of Accounting and Auditing , 1998, p. 780
