| Above Water | |
 The condition of an asset's actual value when it is greater than the asset's book value. |
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 Generally, the book value of an asset listed in a company's balance sheet cannot be adjusted according to GAAP. Should the asset appreciate, its market value would be 'above water'. For example, if a company purchased a piece of land for $100K and the company later discovered an oil reserve on the property, the market value of the land would increase, but the book value would remain at $100K. |
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 The Hidden Value Of Intangibles - Intangible assets don't appear on balance sheets, but they're crucial to judging a company's value. Can You Count On Goodwill? - We go over how to determine whether a measure of this important but hard-to-price intangible asset is justified. |
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