|
East Central Mississippi | Kooiker - 12/23/2024 18:58
RealFarmer - 12/23/2024 18:52 Land values are put down at purchase price and left that way to show actual growth. Net worth is a whole different animal.
The only reason I can think of for raising land values on a balance sheet is so that you can get into trouble borrowing money to buy something you can't afford to pay for.
The reason for doing a balance sheet is to paint an accurate picture of your financial condition. While being conservative is fine, grossly under or over estimating and reporting assets or liabilities is poor business. Do you list your debts or liabilities at less than real figures? If you are not honest with the numbers a balance sheet is not worth the paper it’s printed on. Just my opinion.
Agree
Edited by DC4020 12/24/2024 10:39 | |
|
Balance sheet adjustment
