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Think about assets. What is the worth of your car, your house, your furniture, etc.? E.g. the car cost 20k initially, after two years of use, you discount 20%,
by beza1e1 15y ago
Think about assets. What is the worth of your car, your house, your furniture, etc.? E.g. the car cost 20k initially, after two years of use, you discount 20%, so you put 16k into your books. Is that objective? Essentially, you have to predict the money-out and there is happing a lot between money-in and money-out.
- spullara 15y agoI think their point is that you don't put the car on the books as worth anything. Instead you declare you own it and someone else can decide what they think it is worth. Anything that requires interpretation would be up for discussion.