ACCOUNTING TERMS - ACCOUNTING DICTIONARY - ACCOUNTING GLOSSARY
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PREVENTATIVE CONTROL Definition
PREVENTATIVE CONTROL is a control designed to avoid an unintended event.
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ADJUSTED BOOK VALUE is the value that results after one or more asset or liability amounts are added, deleted, or changed from their respective financial statement amounts. It can be stated in either one of two ways, i.e. Tangible Book Value or Economic Book Value (also known as Book Value at Market). Tangible Book Value is different than Economin Book Value in that it deducts from asset value intangible assets, which are assets that are not hard (e.g., goodwill, patents, capitalized start-up expenses and deferred financing costs).
ENTERPRISE RISK MANAGEMENT (ERM) identifies risks and opportunities, assesses them for likelihood and magnitude, determines responses strategy, and monitors progress. ERM integrates strategic planning, operations management, and internal control. Monitoring ERM is part of internal control activities.