"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.
Cohen notes that "it is difficult to understand why a company should start thinking about the selling price of a non-financial asset
that was just purchased.
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.