Nonfinancial Asset

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Nonfinancial Asset

In accounting, any asset that can be seen and touched. Non-financial assets include things that can be reproduced, such as widgets in a widget factory, and things than cannot be reproduced, such as the land upon which the widget factory is built. Non-financial assets are comparatively easy to price and, therefore, are often used to express the value of a company. However, because they do not include intangible (but still valuable) things like stocks and bonds, they may not truly express a company's value.
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"The suspension of the subsidy program will weigh on the willingness of prospective buyers to acquire a residential unit, given that buying a house constitutes one of the most important investment decisions for the Lebanese, and the value of a house is usually the single most important non-financial asset for Lebanese residents," he added.
The fair value of a non-financial asset would be its value at its highest and best use, taking into consideration what is physically possible, legally permissible, and financially feasible, in the circumstances.
Islamic modes of financing like Murabaha, Musharaka, Mudaraba, Ijara, Salam, Istisna'a and other Islamic modes of financing pose unique risk factors to Islamic Banks, which may be summarised as: Liquidity originated market risk ; transformation of credit risk to market risk and market risk to credit risk at various stages of a contract; bundling of credit risk and market risk, market risk arising from owning the underlying non-financial asset until maturity of a contract or until the ownership is transferred to customer and treatment of default As a result, there are unique balance sheet features of Islamic Banks from a Market risk perspective.
In the (special) case of a 50/50% equity joint venture with a local operator in country x, E would equal 0.5 for any non-financial asset (nfA) in that country.
Extra office space is a non-financial asset within your overall portfolio that has unique potential.
Ghobril pointed out that "buying a house constitutes one of the most important investment decisions for the Lebanese, and the value of a house is usually the single most important non-financial asset for resident Lebanese.
Moreover, recording a tax would not fit well with the case of a sale by auction of a rare good.- The transaction is not the purchase of a service provided by gogovernment: payments are obviously out of proportion with the cost of producing the service.Special cases.However, the characteristics of some contracts may lead to consideration of special cases where the transaction should be viewed as a rent for the use of a non-financial asset (the electro-magnetic spectrum), recorded over the life-time of the licence.
The MJ Central Unit increased irregular expenditure by 2017 in the amount of 6.0 million lei, following the cancellation of the non-financial asset (computer network), which affected the financial statements;
Methodologies applied to the evaluation of the recoverable value of main non-financial assets:
In the structure of the assets of the OFI sector, loans (with the share of 25.8 %) and deposits (23.8 %) have the largest shares, and they are followed by the investments in stocks (15,1 %), investments in securities (13.4 %), non-financial assets (12.8 %), and the remaining 9.1 % refers to other claims.
In contrast to the IMF programme parameters, the fiscal 2019/20 budget includes a higher share of public investment spending (purchase of non-financial assets) at 3.4% of the GDP versus 2.8% in FY 2018/19.