Replacement costs
The replacement costs of an asset represent the acquisition costs of the same or at least a comparable asset in the future. They lead to a better maintenance of substance than current values , but are also more difficult and more imprecise to determine. The replacement costs are mainly used for depreciation within the cost and performance accounting .
species
One differentiates:
- New replacement value
- The replacement value represents the size that would have to be raised to buy the item new today. In order to make this value comparable with that of an object that has already been used, it must be continued. If half of the used item has already been written off, half of the replacement value is also written off and the two values are now compared.
- Worth replacement time
- The replacement value is the value of an object that is as comparable as possible that is / was sold used. It is directly comparable with the valuation of the used item.
The replacement value of a motor vehicle is to be equated with the average dealer sales price, because the injured party is permitted to use the honest motor vehicle trade and does not have to accept cheaper offers from private individuals. Merely because of the warranty claims associated with the sale, dealer sales prices are higher than the prices that a buyer is willing to pay a private seller (see also other vehicle value definitions).
The dealer sales prices differ regionally due to different market conditions and dealer density. When using aids for estimations, internet research or lists (dealer sales price e.g. EurotaxGlass ' -yellow), averaging is made over large areas. You have to correct these values by taking into account the region (in Austria: east-west divide). Mean values from internet research covering several countries must therefore be corrected.
In the national accounts , the Federal Statistical Office shows fixed assets at replacement prices. Replacement prices refer to the prices that apply at the time of the report.
Banking
In banking , replacement costs play a crucial role in the valuation of financial derivative instruments . The replacement costs are referred to here as the replacement value, and the risk due to its change is referred to as the replacement risk . According to Article 286 (2a) of the Capital Adequacy Ordinance , credit institutions must subject the creditworthiness of their business partners (“ counterparties ”) to a creditworthiness check. Credit decisions must lead to the granting of internal credit lines for counterparties in order to limit the business volume for each individual counterparty. For cash transactions , these banks' internal credit lines hot fulfillment limit ( english "Settlement limit" ), all other financial instruments are in the limit for replacement risk ( English "Pre-settlement limit" posted). These include futures , swaps , derivatives or similar financial contracts where the delivery of the underlying asset and the payment as compensation over two trading days will be moved out. The particular risk for banks lies in the term of these financial instruments, because the market value of these transactions can change during their term . The counterparty is at risk of default if these transactions have a positive replacement value and, from the point of view of the bank, a claim against the counterparty arises as a result of market developments . The limit is called "pre-settlement limit" because the other party even before the settlement failure can. The expected replacement costs, also known under the former term credit equivalents (see Exposure ), are posted .
With the credit rating adjustment (CVA) there is a risk that the positive replacement value will decrease because the risk premium for the counterparty increases without default. This risk arises from potential market value losses due to increased credit spreads on the part of the counterparty. The current market value can be calculated in favor of the counterparty using the spread from a hypothetical credit default swap .
Austria
The replacement value is the common, ordinary value of a thing in the sense of § 1332 ABGB ( Austria ). It is determined by objective-abstract investigations and is based on the general and ordinary use. The point in time is the time of the damage, as well as the place where the item is usually used, where the injured party regularly has repairs carried out or replaces. Generally this will be the place of residence (not the place of damage).
Individual evidence
- ^ Paul Nechvatal, Bernhard Wielke: Definitions of the value of a motor vehicle. In: The expert. Issue 2, 2011, ZDB -ID 550271-8 , p. 86, (PDF; 222 kB).
- ↑ "The replacement price is understood to mean the amount that would have had to be paid if the asset had been purchased at the time of the report."
- ↑ Burkhard Vamholt, Credit Risk Management , 1997, p. 141