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| Your income taxes act as actuals if you are not doing actuals (most do not). Also it gives a good picture of your payment capacity for a land purchase because you will need taxable income to pay for the principal portion. Life insurance companies focus heavily on last 3 years of tax returns to determine borrower strength on land loans.
Appraised land value may be helpful when determining liquidity but if your bank is worried about your liquidity you probably aren't going to get them to give you a loan. Also having land is great and all but bankers no as well as anyone it's tied up - if anyone is selling their land that of course is going to affect all of the other lending metrics so it's hardly even worth thinking about it. You'd be flush with cash if you sold all your land and your equipment but then you'd be retired and have little need for a bank. As to my original point has anyone ever had a bank request that you update your land value to appraised market value? I highly doubt it.
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Balance sheet adjustment
