|
 |
|
|
| Glossary
> A
> "Assets" Definition |
 Assets
A firms productive resources.
another word for the investments which a unit trusts holds within its portfolio.
The main sense in which the term asset is used is to describe anything owned by an individual or business which has a monetary value. Some assets are relatively easy to measure - debtors, cash, stock and so on. Others are more difficult - goodwill, intellectual property, and brand values. In the context of a company"s balance sheet, an asset is also a deferred cost. Equipment valued at Ј1m in a balance sheet represents Ј1m which the company spent and which is being depreciated as the equipment exhausts its usable life. The question of whether that equipment is actually an asset or a liability is really whether that asset generates more in after-tax revenues than it costs. If not, it is hardly something accruing to the benefit of the company and its shareholders.More generally, "asset" is used to describe a class of investment product. So, shares, property, and bonds are all asset classes. Hence the phrase used in portfolio management - "asset allocation".
|
|
Glossary 
|
|
|
|
Assets - A firms productive resources.
another word for the investments which a unit trusts holds within its portfolio.
The main sense in which the term asset is used is to describe anything owned by an individual or business which has a monetary value. Some assets are relatively easy to measure - debtors, cash, stock and so on. Others are more difficult - goodwill, intellectual property, and brand values. In the context of a company"s balance sheet, an asset is also a deferred cost. Equipment valued at Ј1m in a balance sheet represents Ј1m which the company spent and which is being depreciated as the equipment exhausts its usable life. The question of whether that equipment is actually an asset or a liability is really whether that asset generates more in after-tax revenues than it costs. If not, it is hardly something accruing to the benefit of the company and its shareholders.More generally, "asset" is used to describe a class of investment product. So, shares, property, and bonds are all asset classes. Hence the phrase used in portfolio management - "asset allocation".
Assets : a firms productive resources.
another word for the investments which a unit trusts holds within its portfolio.
the main sense in which the term asset is used is to describe anything owned by an individual or business which has a monetary value. some assets are relatively easy to measure - debtors, cash, stock and so on. others are more difficult - goodwill, intellectual property, and brand values. in the context of a company"s balance sheet, an asset is also a deferred cost. equipment valued at Ј1m in a balance sheet represents Ј1m which the company spent and which is being depreciated as the equipment exhausts its usable life. the question of whether that equipment is actually an asset or a liability is really whether that asset generates more in after-tax revenues than it costs. if not, it is hardly something accruing to the benefit of the company and its shareholders.more generally, "asset" is used to describe a class of investment product. so, shares, property, and bonds are all asset classes. hence the phrase used in portfolio management - "asset allocation".
Главная 
Copyright © 2003