What Is Assessable Profit? Assessable profit is a calculation used in tax law to determine an individual’s taxable income based upon gains or losses on funds held in taxable investment accounts. The term “assessable” references profits that are capable of being assessed for taxation purposes. It is taken net of items such as investment account
What Is an Assessment? An assessment occurs when an asset’s value must be determined for the purpose of taxation. Some assessments are made annually on certain types of property, such as business properties. Homes are often valued every year, though some taxing authorities may only do an assessment every five years. Houses are assessed according
What Is an Asset? An asset is a resource with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide a future benefit. Assets are reported on a company’s balance sheet. They’re classified as current, fixed, financial, and intangible. They are bought or created to increase a
What Is an Asset-Backed Commercial Paper (ABCP)? An asset-backed commercial paper (ABCP) is a short-term investment vehicle with a maturity date that is typically between 90 and 270 days. A bank or other financial institution typically issues the security itself. The notes are backed by the company’s physical assets such as trade receivables. Companies will
What Is Asset Size? Asset size is the total market value of the securities in a fund. It can also be referred to as assets under management. Funds regularly report total assets which can be affected by supply, demand and market return. Asset Size Explained Asset size for mutual funds is often reported by share
What Is an Asset Acquisition Strategy? An asset acquisition strategy is when one company buys another company through the process of buying its assets, as opposed to a traditional acquisition strategy, which involves the purchase of stock. Key Takeaways An asset acquisition strategy is the purchase of another company through the process of buying its
What Is Asset Allocation? Asset allocation is an investment strategy that aims to balance risk and reward by apportioning a portfolio’s assets according to an individual’s goals, risk tolerance, and investment horizon. The three main asset classes—equities, fixed-income, and cash and equivalents—have different levels of risk and return, so each will behave differently over time.
What Is an Asset Base? An asset base refers to the underlying assets that give value to a company, investment, or loan. The asset base is not fixed; it will appreciate or depreciate according to market forces, or increase and decrease as a company sells or acquires new assets. Although it is completely normal for
What Is an Asset-Based Approach? An asset-based approach is a type of business valuation that focuses on a company’s net asset value. The net asset value is identified by subtracting total liabilities from total assets. There is some room for interpretation in terms of deciding which of the company’s assets and liabilities to include in the
What Is Asset-Based Finance? Asset-based finance is a specialized method of providing companies with working capital and term loans that use accounts receivable, inventory, machinery, equipment, or real estate as collateral. It is essentially any loan to a company that is secured by one of the company’s assets. Asset-based funding is often used to pay
