In SAP Asset Accounting, which of the following are valid examples of different valuation approaches that can be used to value the asset portfolio and related transactions?

Introduction / Context:
Modern organizations often need to value their fixed assets differently for local statutory reporting, tax purposes, internal management reporting, and international financial reporting standards. SAP Asset Accounting supports multiple valuation approaches through depreciation areas and separate ledgers. This question checks whether you can recognize typical examples of such valuation approaches and understand why they coexist in the system.

Given Data / Assumptions:

- The system is configured with multiple depreciation areas for different reporting requirements. - The organization must comply with local accounting rules, tax legislation, and possibly international standards. - Internal accounting may require its own valuation approach, for example for cost center planning. - The question lists several possible reporting contexts, and you must identify which combination constitutes valid valuation approaches.

Concept / Approach:
In SAP, each valuation approach is usually represented by a depreciation area. One area may hold values required for local legal financial statements. Another may produce values specifically for tax balances, sometimes with different useful lives or special depreciation rules. Internal cost accounting may require its own perspective on asset values to support cost calculations and profitability analysis. Finally, international or group reporting, such as IAS or US GAAP, may require yet another valuation that aligns assets across group companies. All of these represent valid and common valuation approaches within Asset Accounting.

Step-by-Step Solution:
Step 1: Identify local financial statements as a valuation approach that follows the rules of the country where the company operates. Step 2: Recognize tax balance sheets as a separate valuation approach driven by tax law, which may differ from commercial law in depreciation rates and methods. Step 3: Consider internal cost accounting as a management oriented valuation approach, where asset values are aligned with internal planning and cost allocation needs. Step 4: Recognize parallel financial reporting such as IAS or US GAAP as group level or international valuation approaches that may use different rules from local GAAP. Step 5: Conclude that the combination described in option a covers all these typical approaches and therefore represents valid examples of different valuation approaches in Asset Accounting.

Verification / Alternative check:
If you review a typical SAP chart of depreciation, you will see depreciation areas for local book valuation, tax valuation, and often areas dedicated to group or international standards. Some customers also maintain separate areas for internal management reporting. Each of these areas follows different rules and can post to different ledgers or be used only for reporting. This confirms that the examples in option a are realistic and aligned with standard practice.

Why Other Options Are Wrong:
Option b is wrong because internal cost accounting is only one possible valuation approach and does not replace statutory or tax requirements. Option c is incorrect because tax balance sheets alone are not sufficient for legal financial reporting or internal management needs. Option d is wrong because parallel financial reporting standards such as IAS or US GAAP are important but do not replace local financial statements, which are mandatory in most jurisdictions.

Common Pitfalls:
One common pitfall is assuming that a single valuation is enough for all purposes, which may lead to conflicts between tax reporting and management reporting. Another mistake is configuring depreciation areas without clear mapping to real reporting requirements, which creates unnecessary complexity. Understanding that local, tax, internal, and international reporting can all require separate valuation approaches helps you design a chart of depreciation that meets all stakeholder needs without duplicating effort.

Final Answer:
The correct statement is that financial statements according to local requirements, balance sheets for tax purposes, internal accounting, and parallel financial reporting such as IAS or US GAAP are all valid examples of different valuation approaches. Therefore, the correct option is Financial statements according to local requirements, balance sheets for tax purposes, internal cost accounting, and parallel financial reporting such as IAS or US GAAP.