Plan assets are financial assets held in retirement plans to generate income for funding the plan. Examples include stocks, bonds, and mutual funds. Investment managers oversee asset management, selecting assets based on stable and reliable returns. Plan assets receive special tax treatment and there may be restrictions on what can be considered a plan asset. […]
Contingent assets are potential economic benefits that are not included on a company’s balance sheet but are disclosed in financial statements. They may arise from past events, such as a pending lawsuit, and are not accounted for in the same way as contingent liabilities or losses. The purpose is to provide an honest representation of […]
GPS asset tracking involves using small GPS or RFID chips to track assets. Outfitting items with secure GPS devices, choosing good software, and considering value for money are important factors in successful implementation. Special services and features such as real-time reports and archiving can also be useful. Many of the best GPS asset tracking tips […]
Asset accounting records and reports a company’s financial information related to its balance sheet assets, which are divided into current and fixed groups. Current assets include cash, inventory, and accounts receivable, while fixed assets include intangibles, tangibles, and investments. Asset accounting values these items according to GAAP guidelines and maintains separate depreciation schedules for fixed […]
Contra assets have a natural credit balance and are used to reduce asset accounts such as accumulated depreciation. Two common examples are the allowance for doubtful accounts and accumulated depreciation. Contra accounts may have a zero balance in some cases and may require a separate disclosure paragraph. A contra asset is an account that has […]
Moderate asset allocation models contain growth stocks, income-producing bonds, and cash. They are less risky than aggressive models but offer less growth. Bonds are less risky than stocks, but provide regular income payments. Cash securities are low risk and can protect assets during market downturns. Some investment firms offer moderate allocation models with varying levels […]
Asset protection strategies involve protecting money and property from creditors, taxes, and lawsuits. Strategies include retirement plans, trusts, and corporate entities. Attorneys use a combination of methods to help clients protect income, and strategies vary by jurisdiction. Retirement plans and irrevocable trusts can protect assets from lawsuits, while corporate entities like LLCs protect personal assets […]
Credit derivatives use reference assets to control risk and receive payment in the event of a credit event. The type and trustworthiness of the asset determine the structure of the contract, and derivatives can be used to trade risks and credits. The market is complex and requires careful consideration by experienced investors. A reference asset […]
A knowledge asset is information gained from a company’s experiences or innovation that can become physical assets, such as patents or copyrights, or intangible best practices. Companies with valuable knowledge assets have a competitive advantage. Processing and distilling information into best practices is crucial. A knowledge asset is an asset that is generated from an […]
The Capital Asset Pricing Model (CAPM) estimates the expected rate of return for a stock based on its beta risk, with higher risks justifying higher returns. The formula starts with the risk-free rate and calculates the premium generated by investing in the stock market above a risk-free asset. The Security Market Line (SML) graph compares […]
Non-performing assets are loans that are at risk of default due to changes in the borrower’s financial situation. Loans exceeding 90 days with no payment are classified as non-performing. Lenders work with borrowers to prevent default. Late payments do not necessarily make a loan non-performing. Lenders classify a loan as non-performing only when the borrower […]
Asset trading, or asset swapping, can help improve a company’s cash flow by creating a package that includes a cash medium or credit asset and a swap of assets of equal value to create a floating interest rate instrument. This strategy can be useful in bringing current liabilities in line with assets and making the […]
Choose an experienced asset recovery specialist with qualified personnel and strong industry connections. For international asset recovery, select a specialist familiar with foreign laws. Look for a company with a successful track record and satisfied customers. Certification is recommended for vehicle repossession. The best asset recovery specialists will have years of experience in a particular […]
Fundamental stock analysis focuses on a company’s financial components, such as earnings, revenues, and dividends, to determine its future outlook. However, it has limitations, such as not considering non-monetary elements and market share. Financial statements, including net income and earnings per share, are used in the analysis. Dividend payments also contribute to the overall return […]
Asset protection specialists work with individuals and businesses to prevent loss and facilitate claims. They may have experience in insurance, security consulting, and financial planning. They help clients select insurance policies, create asset inventories, and recommend security systems. They also offer financial planning and assistance. Different professionals may offer asset protection services, and training programs […]
Asset class correlations determine how investment categories respond to the same events. High correlations can be risky, and diversification is key to minimizing risk and maximizing profit. Allocating money to different types of securities within the same asset class can achieve diversification. Commodities and stocks within the same sector may be uncorrelated, providing further diversification […]
Active real estate ownership offers potential for cash flow and appreciation, but requires management and lacks liquidity. Financing and tangible nature are advantages, while paper assets offer liquidity. Ownership as an active class is one of the most popular attractions available. The active real estate class combines the potential for capital appreciation with a constant […]
Asset turnover ratio is a useful tool to evaluate a company’s efficiency in utilizing its resources. It is calculated by dividing the total value of assets by net sales generated in a specific time period. A high ratio indicates effective use of resources, while a low ratio suggests the need for rethinking strategies. This evaluation […]
ETF asset allocation involves deciding how much of a portfolio should be invested in ETFs to diversify investments and improve risk/reward ratios. ETFs offer opportunities for returns on various investments and can be easily bought or sold online. They can also provide access to different sectors and regions. ETF asset allocation involves considering how much […]
Assets are resources that a company can convert into cash, divided into short-term and non-current assets. Non-current assets include property, plant and equipment, long-term investments, and intangible assets such as goodwill. Goodwill represents a company’s reputation and can hold significant value. Liabilities are what a business owes, including short and long-term loans and deferred tax […]
