hidden assets


Hidden Asset

Value that a person or company possesses that does not appear on its balance sheet. One may have a hidden asset due to an accounting convention. For example, a company may be required 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. A hidden asset is also called a hidden reserve or a hidden value.

hidden assets

Items of value that are owned by a firm but do not appear on its balance sheet. For example, a trademark or patent may be a firm's most valuable owned asset; yet, it would not appear as such on its balance sheet.