What does going concern value represent?

Going concern value reflects the additional value that arises when an asset or business is part of an operational entity as opposed to being considered in isolation. This value accounts for the synergies, operational efficiencies, customer relationships, and brand reputation that exist as a result of the business's ongoing nature.

When a business is functioning well and generating revenue, there are various intangible and tangible aspects that contribute to its overall worth. These include established processes, employee expertise, and market presence that enhance the value beyond just the sum of individual assets.

In contrast, the other options refer to narrower concepts. For example, tangible assets pertain only to physical items like machinery or inventory without considering their role within a business's operations. Similarly, the value of a property used for generating income pertains merely to the property itself and does not encompass the additional benefits of operating as part of a larger business framework. Lastly, the assessed value post-sale may include various components, but it does not capture the ongoing operational value that a "going concern" provides. Thus, going concern value specifically highlights the benefits derived from a business's continuous operation, which is why it is considered the correct definition in this context.