Ten hard questions to ask or be asked

1Are the book values of fixed assets representative of realizable market values?
2What intangibles (such as brands, location and other intellectual property) exist which are not recorded as fixed assets?
3Should this item really be regarded and booked as a fixed asset? Or is it an expense?
4Have we taken the correct amount of the acquisition and maintenance costs and residual values?
5Are expected lives realistic?
6Is the depreciation policy for each category of fixed assets appropriate?
7Should we rent or buy?
8What are the true costs of ownership?
9Are insured values correct?
10When comparing two asset-rich companies, is depreciation calculated on the same basis? (If not, adjust before comparison.)

Get The Definitive Guide to Business Finance: What smart managers do with the numbers, Second Edition now with O’Reilly online learning.

O’Reilly members experience live online training, plus books, videos, and digital content from 200+ publishers.