Cost, Value, and Going Concern Measurement

Cost, Value, and Going Concern Measurement covers measurement bases used to value assets and interpret accounting assumptions in financial statements.

Use these pages when asset measurement changes book value, earnings timing, impairment risk, return metrics, collateral value, or valuation assumptions. It sits inside Presentation Methods and Valuation Models, so readers can move up when the broader accounting context matters.

Use the table below to choose the narrower accounting branch before applying a term to a statement line, model input, audit trail, tax schedule, covenant test, or management report.

What This Branch Covers

What to Check

• Asset type, cost basis, capitalized amount, useful life, depreciation or amortization policy, and impairment trigger.
• Balance sheet line, acquisition record, capitalization policy, impairment test, appraisal, disposal record, and note disclosure.
• Carrying value, fair value, recoverable amount, residual value, accumulated depreciation, goodwill, and lease right-of-use asset.
• Whether the issue affects earnings, equity, taxes, covenant ratios, collateral, or valuation multiples.
• Comparability across GAAP, IFRS, peer policies, and reporting periods.

Common Mistakes

• Treating book value as market value or recoverable value.
• Ignoring accumulated depreciation, amortization, impairment, and write-downs.
• Capitalizing routine expenses without checking the accounting policy.
• Comparing asset-heavy businesses without normalizing useful lives and impairment history.

Asset-accounting content is educational and does not provide accounting, audit, tax, appraisal, investment, or valuation advice.

In this section

Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.