Questionable question imo
Why aren't all liabilities recognized at their risk free rate or discounted risk free rate. And the difference between the amount and the actual cash received recognized as a separate item?
Matthew 6:34, worries and the system of money
Jesus said "Take therefore no thought for the morrow: for the morrow shall take thought for the things of itself. Sufficient unto the day [is] the evil thereof." ( http://www.blueletterbible.org/Bible.cfm?b=Mat&c=6 , 2013) Don't worry about tommorow At first I thought about this verse, I thought, should we throw all of our businesses away? If it were personal riches then it's debatable, but throwing away our businesses away? Wouldn't that be absurd, cause businesses are helping people. Well still figuring out that now, but I realize that Jesus wasn't only talking about personal wealth. But also about the wealth of the community, a country. Jesus was talking about how we about to do about our money. We have to admit, we are now liable to hyperinflation. Because we have the right to spend all of our money in the bank as well as other people. And if we were forced to do that all at the same time, then the economy would collapse. But we have the rig
So people might make 2 kinds of Balance sheets:
BalasHapusSustainable / Eternal balance sheet... (Everything's valued at risk free rate) (rather a kind of historical balance sheet)
And the other one is an "as at" balance sheet, which is at market value balance sheet.
This "Eternal Balance sheet" has more personal and unique value in it.
HapusAn asset might worth so little at the market, but for this particular company, this particular asset is so valuable.
If this company has helped a lot of people, some might buy the particular asset at the "historical" price, for personal reasons.
It could also be done like this:
Hapus1 Balance sheet, "Eternal" based (Using current risk free rate for values), but with contra accounts or additional accounts that adjust for market value.
On the Equity side there would be an account for "overall market difference".
Another questionable mindset is to think that the performance of the company is their revenue.
BalasHapusSo if you help people and, others won't acknowledge you, then you're not performing?
The performance of the company is the help they've provided. And deeds are reflected through costs.
Ofcourse, some deeds could be done with less costs. The scarcity of the world is not of time nor energy nor money but of mutual solutions.
However, revenue really is not always smart, it's not always good, it's not always sustainable for the community.
Profit therefore is not really the company's performance, since high profit made from causing harm is not really a favorable performance.
Performance increases as one's completed acts that supports interactions after interactions after interactions forever.
And high performance should be rewarded.
What makes us richer (in terms of love) are assets that have enabled us to help.
And we help ourselves by worrying about other people, worrying about ourselves only is not productive.
So things that's consumed for spoiling ourselves or others, are not high performance material.
When companies could help others to increase their willingness and ability to help others to increase their willingess and ability to help others and so on...
Then I'd categorize that the company has performed.