The alphabetical layout will help you easily find the word you need. Corporate intellectual property, including items such as patents, trademarks, s and business. Asset definition, a useful and desirable thing or quality. A write off involves removing all traces of the fixed asset from the balance sheet, so that the related fixed asset account and accumulated depreciation account are reduced. A trading book is the portfolio of financial instruments held by a brokerage or bank. Off balance sheet refers to items that are effectively assets or liabilities of a company but do not appear on the companys balance sheet. Anyone can earn creditbyexam regardless of age or education. Learn about what types of assets are often accounted for using the offbalance sheet method and why this accounting technique is appealing to.
Book value is strictly an accounting and tax calculation. You can test out of the first two years of college and save thousands off your degree. Offbalance sheet obs, or incognito leverage, usually means an asset or debt or financing. When the business has no further use for an asset and disposes of it by selling, scrapping or other means the asset is removed from the companys balance sheet by writing it off. In off balancesheet financing, large capital expenditures are kept off a companys balance sheet to keep the debt to. Following the write off, no part of the assets cost or depreciation. A business tries to keep certain assets and liabilities off its balance sheet in order to present to the investment community a cleaner balance sheet. Accounting procedure for taking assets off the books.
A term used for transactions, such as payments or barter, that are illegally not recorded so that the transactions are hidden. Financial instruments in a trading book are purchased or sold for reasons including to. Book adjusted basis is a measure of what an asset is worth from a companys perspective on its books. A fixed asset is a longterm tangible piece of property that a firm owns and uses in its operations to generate income. Off the book transactions are sometimes used to hide transactions from taxation or from government regulations. These give a picture of their assets and liabilities at any given time. Off balance sheet refers to the assets, debts or financing activities that are not presented on the balance sheet of an entity. The book value of an asset can change based on factors like improvements on an asset or. What is the difference between the taxadjusted basis vs. At that point, the asset is considered to be off the books. Its important to note that the book value is not necessarily the same as the fair market value the amount the asset could be sold for on the open market. Discover the meaning of common bookkeeping terms, words and phrases from this quick a z style guide.
Off the books definition, not recorded in account books or not reported as taxable income. An asset is a resource with economic value that an individual, corporation or country owns or controls with the expectation that it will provide future benefit. Offbalance sheet is the classification of an asset or debt that does not. The book value of an asset is the value of that asset on the books the accounting books and the balance sheet of the company. That doesnt mean the asset must be scrapped or that the asset doesnt have value to the company. Off balance sheet obs items refer to assets or liabilities that do not appear on a companys balance sheet but that are nonetheless effectively assets or liabilities of. A fixed asset is written off when it is determined that there is no further use for the asset, or if the asset is sold off or otherwise disposed of. An intangible asset is an asset that is not physical in nature. Since, by definition, an asset must be controlled by the entity in order for it to be recognized in the financial statements, certain assets would not qualify for recognition. Generally speaking, a hardworking and motivated workforce is the most valuable asset of any successful company. Fixed assets are not expected to be consumed or converted into.