On 1/8/2023 8:35 AM, davidbrown.r...@photos.bozeat.biz wrote:
08 Jan 23
Dear all, I have a couple of additional assets to be included in EoY reports
in a few months, that have cost nothing, but a value needs to be shown as
assets have increased.
How do I include those at their value?
My current status for that account is .... ASSETS > Current Assets >
Equipment .... although there is another account showing .... Equity >
Equipment Assets
Thank you ...
David
This is an accounting question, not a gnucash question. You need to
refer to the rules of your jurisdiction/
By the account named (Equipment Assets) I assume that these are probably
"fixed assets" that are depreciated annually. You say
'cost nothing" so I assume that means literally (cost nothing to
acquire) or already fully depreciated.
In MY jurisdiction these would come onto the (new) books at zero value.
Yes, they might have residual real value in the sense that they could be
sold for something. But if and when that happens, the "profit" (sale
price - basic cost + depreciation since acquisition) would be a capital
gain. You would not "mark to market" << in your main/legal books >> as
this gain is still imaginary/conditional/hasn't happened yet an maybe
never will.
HOWEVER -- there is a special case situation where your "legal" economic
state (according to your jurisdiction) is very different from your
actual economic state because some assets have greatly more value than
the jurisdiction recognizes. In that case, perhaps a second set of
virtual books that have no legal standing. This does not require total
duplication of effort as this second set of books need only have a few
accounts and these adjusted only annually, etc.
It's not JUST assets the jurisdiction doesn't recognize but possibly
also expenses paid on your behalf that the jurisdiction doesn't consider
income. The purpose of accounting is financial INFORMATION including the
ability to compare "what ifs" and without being able to take into
account things like this you couldn't, for example, compare two job
alternatives, one with and one without a large amount of such "percs"
Michael D Novack.
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