Invalid assets refer to non-operating assets and idle assets that can't participate in production and operation, and can't contribute to the profitability of the enterprise, as well as assets that are operating assets, but have lost their operating ability and profitability in the evaluated enterprise.

inefficient assets refer to assets with low efficiency and benefit in planning and without special strategic arrangements. Assets whose return on assets is lower than the benchmark interest rate of bank loans for the same period of one year.

Extended information:

When defining valid assets and invalid assets, attention should be paid to:

1. Assets with unclear property rights can be included in the general scope of enterprise value evaluation, and special instructions should be made.

2. Effective means that the asset is based on its contribution to the profitability of the enterprise; It should be the normal profitability of the enterprise; Reveal the enterprise value objectively.

3. Disposal of invalid assets: divestiture of assets is not an integral part of enterprise value; Evaluate invalid assets separately and add them to the final result of enterprise evaluation. Both need to be disclosed in the report.

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