Capital Adequacy Directive and Net asset value: Difference between pages

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''European Union law.''
(NAV).  


(CAD).  
1.
 
A method of valuing a business which is based on the sum of the values of each of its assets, less its total liabilities.
 
The current balance sheet of the business would normally be the starting point for a net asset valuation.
 
The (starting) book values of assets and liabilities in the balance sheet are then appropriately adjusted to reflect relevant current market values.
 
Further adjustments are then made for the addition of any other relevant assets and liabilities (not reflected in the starting balance sheet).
 
 
2.
 
Similar valuation methods applied to other entities.


European directive issued in 1995 and subsequently revised as CAD2, aims to establish uniform capital requirements for both banking firms and non-bank securities firms.


== See also ==
== See also ==
* [[Basel II]]
* [[Accumulating net asset value]]
* [[Capital adequacy]]
* [[Book value]]
* [[Capital Requirements Directive]]
* [[Constant net asset value]]
* [[Going concern]]
* [[Gone concern]]
* [[Investment trust]]
* [[Low-volatility NAV]]
* [[Net]]
* [[Tangible net worth]]
* [[Variable net asset value]]
 
[[Category:Investment]]

Revision as of 17:51, 11 February 2022

(NAV).

1.

A method of valuing a business which is based on the sum of the values of each of its assets, less its total liabilities.

The current balance sheet of the business would normally be the starting point for a net asset valuation.

The (starting) book values of assets and liabilities in the balance sheet are then appropriately adjusted to reflect relevant current market values.

Further adjustments are then made for the addition of any other relevant assets and liabilities (not reflected in the starting balance sheet).


2.

Similar valuation methods applied to other entities.


See also