Variable items hold their values in terms of purchasing power as a result of the ways in which they are valued in terms of IFRS, SA GAAP or just simply in the market, in which their nominal values are adjusted to allow for the many factors that determine their values - including - amongst many factors - inflation. For example: fair value, market value, net realizable value, present value and recoverable value all adjust for inflation in the real value of the Rand as part of the specific valuation process.
Valuation values
Values used in the valuation of variable items on a primary valuation basis include the following:
Market value
Fair value
Net realisable value
Present value
Recoverable value
Current cost
Carrying value
Residual value
Value in use
Settlement value
Book value
Replacement cost
Historical cost
Copyright © 2010 Nicolaas J Smith
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