Definition
Improper Asset Valuation refers to the intentional overstatement or understatement of assets in financial reporting to misrepresent an entity’s financial position.
Context
Improper Asset Valuation is commonly associated with financial statement fraud and other forms of fraud. It is closely linked to weak internal controls, flawed valuation processes, and deliberate manipulation of financial statements.
Meaning
Improper Asset Valuation distorts financial ratios, affects creditworthiness, and may lead to misinformed decisions by investors, lenders, and other stakeholders.
Example
Overstated inventory values to improve reported financial performance.
Sources
Suggested citation
wirtschaftsforensik.ch Editorial Team: "Improper Asset Valuation", in: Glossary, wirtschaftsforensik.ch, https://wirtschaftsforensik.ch/glossar/improper-asset-valuation/, accessed April 18, 2026.