Page 17 - SBR Integrated Workbook STUDENT S18-J19

Frameworks

2.6 Non-financial assets

The definition of a financial asset is covered in detail in Chapter 12. Common
financial assets include trade receivables, investments in debt instruments and
investments in shares.

Common non-financial assets include:

 property, plant and equipment

 intangible assets.

The fair value of a non-financial asset should be based on its highest
and best use.

The highest and best use of an asset is the use that a market participant would adopt
in order to maximise its value.

This use need not be legally approved, although it must not be legally prohibited.

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