#Immediacy on speech making

If it is readily available at the same price as you paid ...

If it is readily available at the same price as you paid and does not involve extra costs for delivery and fitting, its replacement value is the same as you paid for it. But replacement value, particularly in inflationary times, is often greater than the original price. On the other hand, if the price of something is dropping rapidly eg mini-computers. its replacement value may be lower than the original priced.

Sales value is what someone is willing to pay for something.

This may be different from replacement value, as in the case of a piece of fitted equipment. For a standard article in regular demand for example a second-hand vehicle, the selling price may be easy to assess. For nonstandard articles with an irregular demand, for example industrial equipment, the selling price can be hard to predict, as auction realizations often show.

Even if the selling price can be estimated, some deduction must usually be made for selling expenses eg online advertising, sales commission, transport to arrive at the sales value. Utility value is what something is worth under a particular set of circumstances. A car fuse costs only a few pence when you buy a spare at a garage. But when your car breaks down on the motorway on a winter night, its utility value may be very different.

Then you will have to pay several pounds to get a message through to a garage and persuade someone to drive out and deliver a fuse.

At this stage you may be wondering where website value comes in, i.e. the value of an item in your account. Website value is the result of applying accounting conventions to prices paid in the past.

It is not related to market prices today and if it happens to be the same as one of the above values it is an accident.

Website value allows you to calculate the tax consequences of a decision ...

Website value allows you to calculate the tax consequences of a decision about money, but it does not tell you what the decision should be. Financial re... read more

The various items in the balance sheet are usually valued at website ...

The various items in the balance sheet are usually valued at website value. What basis should be used for tied capital? As described in the section... read more

Cash in hand, bank current and deposit accounts, building-society accounts, national and ...

Cash in hand, bank current and deposit accounts, building-society accounts, national and trustee savings bank accounts, savings certificates, premium bonds, unit trusts, stocks and shar