What is Hidden assets?

[Hari priya]

Hidden assets is an asset that is not shown on a balance sheet. A Hidden assets is also called a hidden value or hidden reserve.

Example:1.  A trademark or patent may be a firm’s most valuable owned asset; yet, it would not appear as such on its balance sheet.

2. A company may be require to depreciate an asset faster than its actual value declines. This results in a Higher net worth for the company than would be reflected in its books.

[nishat Parveen]

United airlines is one such example who had hidden assets during bankruptcy

[jeevithakomu]

Assets that can be undervalued on a company’s balance sheet & therefore not incorporated into or reflected in the company’s share price.

Eg : hidden assets would be oil & gas leases that are not yet generating cash , real estate purchased in 1950s.

[Deepika Nautiyal]

The most common types of assets hidden are cash, bonds, mutual funds, cash value in insurance policies and variable annuities, stocks, travelers’ checks, Series EE savings bonds, and bearer municipal bonds.

[Mounika]

value that a person or a company possesses that does not appear on its balancesheet

Eg;

A company may be required to depreciate an asset Faster than its actual value declines this results in a higher networth for the company that would be reflected in its books

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