stud: On a much smaller scale I have a simulor problem my account & CA they always write my assets down for much less than their currant market value. I find it most frustrating when I seek the banks for lending, But at the same time they both save me lots on taxes. >
Current values for tangible assets are relevant at 2 points in time only:
1) when a business buys the asset at arm's length
2) when the business sells or otherwise disposes of that same asset at arm's length
Otherwise, most tangible assets are disclosed at historical cost reduced by depreciation charges, even though these valuations often do not reflect economic reality .
If you are using accountant's financial statements in order to borrow and your business owns assets (such as real estate) where current market values grossly exceed accountant's values, have a second balance sheet prepared based on appraised current values, or disclose the appraised current values in a footnote to the accountant's statement.