About the Asset Current Value (AVP)
By definition, the value of a given asset, be it a project, company or investment, is the sum of the Current Value of its future estimated cash flows deducted by the appropriate rate of the risk of the asset.
The calculation of the current value of an asset is obtained by the following expression: |
CV = FV / (1+i)n |
Where:
CV = Asset current value
FV = Asset Future value
i = Interest rate used to represent the risk of this asset
n= Number of days between the asset issue date and is effective execution
Control Method
Each fixed asset form has a statement of its AVP occurrences created by the following operations/actions:
| • | Constitution: transaction which indicates the value of the AVP (difference between the future and current values) to be realized. |
| • | Appropriation: transaction which indicates the value of the AVP constituted and which has already become owed due to the passing of a certain period. |
| • | Realization: transaction which indicates the realization of fraction of the AVP, be it due to total or partial write-off of the fixed asset form, be it due to the end of the period established for AVP (date from |