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CISM study material · question 283 of 1000

A finance team values a research database at its replacement cost. Which broader view of asset value does IR 8286 take?

  1. Value extends beyond replacement cost to future revenue, share price, reputation and competitive advantage
  2. Value is the insured sum for the asset
  3. Value is fixed by the depreciated book value carried in the accounts, which is the figure the external auditor will accept
  4. Value equals the cost of the controls protecting it, since an organisation spends in proportion to what it stands to lose
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Answer: A. Value extends beyond replacement cost to future revenue, share price, reputation and competitive advantage

IR 8286 notes an asset's value extends beyond replacement cost: the long-term losses from theft of intellectual property could affect future revenue, share prices, enterprise reputation and competitive advantage.

Source: NIST IR 8286 (NIST) — Sec. 3.2.1 Inventory and Valuation of Assets

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