How physical asset valuation and research and development costs are likely to pose risks
Answers
Intangible assets are business assets that have no physical form. Unlike a tangible asset, such as a computer, you can't see or touch an Intangible assets.
Explanation:
Physical assets include property, plant, and equipment etc. Now it is important to calculate the proper depreciation of physical asset, means it should be assigned proper asset valuation. If this is done wrong, it can impact the overall balance sheet of the company, also the loans the company took to purchase the asset.
Similarly, it is important that company invest in R&D but in a rational way, because if R&D is not in right direction, it would destabilise the company operations
Find more relevant information at;
Difference between verification and valuation of assets
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