lower of investment value or current cost

简明释义

投资价值与现行成本孰低

英英释义

例句

1.For tax purposes, it is crucial to report the value at the lower of investment value or current cost to minimize liabilities.

出于税务目的，报告价值为投资价值或当前成本中的较低者至关重要，以减少负债。

2.The company reported its assets at the lower of investment value or current cost, ensuring accurate financial statements.

公司以投资价值或当前成本中的较低者报告其资产，确保财务报表的准确性。

3.The accountant explained that the valuation should reflect the lower of investment value or current cost to comply with accounting standards.

会计师解释说，估值应反映投资价值或当前成本中的较低者，以符合会计准则。

4.In evaluating the inventory, we must account for the lower of investment value or current cost to avoid overstating our assets.

在评估库存时，我们必须考虑投资价值或当前成本中的较低者，以避免高估我们的资产。

5.During the audit, the auditor checked if the assets were listed at the lower of investment value or current cost as required.

在审计过程中，审计员检查资产是否按要求列示为投资价值或当前成本中的较低者。

作文

In the world of finance and accounting, the concept of valuing assets is crucial for making informed decisions. One key term that often comes up in this context is the lower of investment value or current cost. This principle is essential for businesses when assessing the value of their assets on the balance sheet. To understand this concept better, let's break it down into its components and explore its implications for financial reporting.Firstly, the term 'investment value' refers to the original cost incurred by a company to acquire an asset. This could include the purchase price, shipping costs, installation fees, and any other expenses directly associated with bringing the asset to a usable state. Over time, however, the market value of this asset may change due to various factors such as wear and tear, technological advancements, or shifts in market demand.On the other hand, 'current cost' reflects the amount that would need to be spent to replace the asset at the present time. This figure can fluctuate based on market conditions, inflation rates, and changes in technology. Therefore, it is not uncommon for the current cost of an asset to differ significantly from its original investment value.The principle of lower of investment value or current cost arises when companies are required to report their assets at the lower of these two values. This conservative approach ensures that the financial statements do not overstate the value of assets, which could mislead investors and stakeholders. By adhering to this principle, companies can maintain transparency and provide a more accurate picture of their financial health.For instance, consider a manufacturing company that purchased a piece of machinery for $100,000 five years ago. Due to advancements in technology, the current cost to replace that machinery has dropped to $80,000. If the company were to apply the lower of investment value or current cost rule, it would report the machinery on its balance sheet at $80,000 instead of the original investment value of $100,000. This adjustment reflects the reality of the asset's worth in the current market.Furthermore, applying the lower of investment value or current cost principle can also have tax implications. When companies write down the value of their assets, it can lead to lower taxable income, which in turn affects cash flow and investment strategies. This aspect highlights the importance of accurate asset valuation in overall business planning and strategy.In conclusion, understanding the principle of lower of investment value or current cost is vital for anyone involved in finance or accounting. It ensures that businesses report their assets accurately, reflecting their true economic value. By doing so, companies can foster trust with investors, stakeholders, and regulatory bodies, ultimately contributing to a more stable and transparent financial environment. As we navigate the complexities of modern finance, principles like these serve as guiding lights, helping us make sound financial decisions that benefit all parties involved.

在金融和会计的世界中，资产估值的概念对于做出明智的决策至关重要。一个常常出现的关键术语是投资价值或当前成本较低。这一原则对企业在评估资产在资产负债表上的价值时至关重要。为了更好地理解这一概念，让我们将其分解为几个组成部分，并探讨其对财务报告的影响。首先，‘投资价值’一词指的是公司为获取资产而支付的原始成本。这可能包括购买价格、运输费用、安装费用以及与使资产达到可用状态直接相关的任何其他费用。然而，随着时间的推移，由于磨损、技术进步或市场需求变化等各种因素，该资产的市场价值可能会发生变化。另一方面，‘当前成本’反映了在当前时刻替换该资产所需支出的金额。这个数字可能会根据市场条件、通货膨胀率和技术变化而波动。因此，资产的当前成本与其原始投资价值显著不同并不罕见。投资价值或当前成本较低原则在公司需以这两个值中的较低者报告其资产时产生。这种保守的方法确保财务报表不会高估资产的价值，从而误导投资者和利益相关者。通过遵循这一原则，企业可以保持透明度，并提供更准确的财务健康状况的图景。例如，考虑一家制造公司，它在五年前以100,000美元的价格购买了一台机器。由于技术进步，替换该机器的当前成本降至80,000美元。如果公司应用投资价值或当前成本较低规则，它将在资产负债表上以80,000美元而不是100,000美元的原始投资价值报告该机器。这一调整反映了该资产在当前市场中的真实价值。此外，应用投资价值或当前成本较低原则也可能具有税收影响。当公司降低其资产的价值时，可能导致应纳税所得额降低，从而影响现金流和投资策略。这一方面突显了准确资产估值在整体商业规划和战略中的重要性。总之，理解投资价值或当前成本较低原则对于任何参与金融或会计的人都至关重要。它确保企业准确报告其资产，反映其真实经济价值。通过这样做，公司能够与投资者、利益相关者和监管机构建立信任，最终促进更稳定和透明的金融环境。在我们应对现代金融的复杂性时，这些原则如同指路明灯，帮助我们做出有利于所有相关方的合理财务决策。