Discussion:Appraisal value for Union H&W fund
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Discussion Forum Index --> Accounting Questions --> Appraisal value for Union H&W fund
| 22 January 2007 | |
| Per ERISA requirements must show appraisal value of real property.
How is it show on Balance Sheet? Appraisal value less book value? Incresae book value by appraisal value and diff. is unrealized gain? Following years- increase appraisal value by current overall market increse, over book value? | |
| January 23, 2007 | |
| And they require this to be shown on the balance sheet, not as a disclosure in the notes? | |
| 25 January 2007 | |
| According the Rules & Regulations of ERISA,(Labor Dept.) it is an requirement to show FMV on the Balance Sheet, just as well as investments in securities @FMV, thereby showing unrealized gain or loss on the P&L. | |
| January 25, 2007 | |
| I think the way I would handle this is to have three accounts -- two on the balance sheet and one other income. One account can be the original cost of the property. The other balance sheet account should be used for any cumulative net unrealized gains/losses. When you prepare the balance sheet, you can combine these two numbers for presentation at FMV. Yes, the unrealized gain or loss gets booked to an other income account called "unrealized gain/loss on real estate." If you are compiling the financial statements, remember to revise your report to state that they are not GAAP. | |
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