VK 5 : Measurement of Assets and Liabilities
*gabungan eva & arini
1. What is subjective value? How does it relate to present (discounted) value?
Subjective value is the preference or desirabillity people have for one item as opposed to other.
An economic basis for preferring one asset arrangement to another in each plan of operation
which serves as the basis for deciding on a course of action. The plan can be change as
circumstances and expectation change.
According to John Canning, the value of an asset or liability is the present value of the future net
cash flow related to it. The notion is that there is a time dimension to the value of money. There
was an old saying “A bird in hand is worth two in the bush” which means people prefer to receive
a given amount of money now rather than later.
For example : I lend money to you Rp 100.000,00 today. I demand that you should pay me more
in the future say Rp 1.000,00.
2. If you were asked to determine the “true” economic value of a house you wished to purchase,
what are some of the variables you would consider?
a. location is strategic (close to important facilities)
b. it is big enough for number of family
c. the price of the house is not really expensive
d. age of appliances or the age of the house
e. neighborhood noise levels
