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Thumb of Michigan | Didn't see one thing mentioned. Maybe I missed it. But, our estate attorney wants pretty accurate numbers for estate planning. I try to get a pretty good ball park number on all the assets that will affect my estate when we meet annually. He really has no way of giving us an accurate plan if we have no idea what the value of the assets are.
As far as what numbers to use on a balance sheet: I have 2 lines. Purchase price and current (estimated) value. I was asked to come back to the farm, and when talking about what my job description was, it was to increase the net worth of the business. That covered it pretty well. I still give myself a report card as such annually. And yes, I do have a factor I use for inflation. Thats all for my use, has nothing to do with a banker or CPA or attorney as far as that goes. I find it too easy to lose focus and perspective if I don't have a measurement of some kind.
To the OP- what would be the downside to you or your business by recognizing a change in an asset value? Only you will know what the impact is. If you own 100 acres and its currently valued at $20,000 per acre, $400 isn't probably much of a concern. If you own 2000 acres at a current value of $8000, $400 i going to be a noticeable change. If you are borrowing money, I'd want to be ahead of it. But thats just me.
Edited by pat-michigan 12/24/2024 05:51
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Balance sheet adjustment
