[GNC] ASSETS

[Michael or Penny Novack]

On 1/8/2023 8:35 AM, davidbrown.rdps at 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.