oboloo Glossary

Asset Basis

oboloo Glossary

Asset Basis

Assets are the lifeblood of a business; they’re the physical and financial resources that help your company make money. Asset Basis is an accounting method used to determine how much of a company’s assets have value and should be included in their balance sheet. This method looks at both tangible (e.g., land, buildings) and intangible (e.g., patents, trademarks) assets to calculate the amount of equity a company can claim on its books. By accurately evaluating each asset, businesses can better understand their financial situation and make wiser long-term decisions.