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Jeremiah Jones
February 13, 2023
Question

Assets Previously unrecorded

  • February 13, 2023
  • 1 reply
  • 0 views

I have a client with Assets that were never books on the balance sheet. I believe they were not expensed either but investments they made personally. But they are assets to the business and they do not reside on the balance sheet. They have been in use for years. Is there a way to get them on the books for purposes of valuating the business in order to sell it? 

And if so can we just decide to never claim depreciation? or Ammortization on the trademark? 

1 reply

Rustler
Rustler
February 14, 2023

You could add the assets in the chart of accounts and use owner equity investment to fund the accounts. I personall would use the current fair market value for them, that way depreciation would not come into play.

 

I'm not sure about intangible assets, best to talk to a tax accountant. But for regular fixed assets taking annual depreciation is an option. Until the asset is sold, scrapped or otherwise disposed of, then you have to calculate the current basis of the asset based upon the depreciation you did not take. Again since I always take the annual deprecation, I am not sure how those accounting entries would be done.

J
Jeremiah JonesAuthor
February 15, 2023

Thanks, Appreciate the feedback, it's what I was thinking. Good idea on current market value as well! 

 

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