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The values ​​presented in this article are the economic values ​​that the assets and companies have when inserted in the market. The economic value can be analyzed by the capacity of cash generation or the comparison with similar ones in the market or by the cost of production or formation. The values ​​usually used in commercial operations are:   Market value: average value of free transactions in the main market; Investment value: value for a given investor at a given moment; Replacement value: replacement value with the same characteristics, but considers the technological upgrades, materials and processes; Reproduction value: reproduction…Read more

The main impacts of IFRS on the management of fixed assets that reflect in the financial statements are: depreciable values, deemed cost, asset revaluations, impairment test and leasing. These analyzes directly affect the values, useful lives and depreciation, exhaustion and amortization rates of the assets.   Impairment Test The Impairment test is intended to prevent an asset from being register with a value greater than the recoverable amount (market value – selling costs). The law establishes that companies must periodically analyze the recovery of amounts recorded in the fixed asssets and intangible assets in order to record the identified losses….Read more