Asset revaluation

Guest · Post by **Guest** » 08.09.2009, 16:53

I just bought 300 million kaps of buildings yet it only add about 50million in assets. Shouldn't asset value be more in-line with the market value. I'm not suggesting it is valued at the price you bought it at but an increase in what the system values each product .

Guest · Post by **Guest** » 08.09.2009, 16:59

it only cost 50 million to build them and thats all that matters.

Guest · Post by **Guest** » 08.09.2009, 17:06

FA = FIXED ASSETS

It wouldn't be called FIXED assets if it wasn't fixed and changed with the market, would it?

Guest · Post by **Guest** » 08.09.2009, 18:21

but dont most comapnies revalue assets because if it was so below the market value the value of the fixed asset it would result in big losses as the money spent gets devalued drastically.

Again i am not for your fixed assets to change everyday compared to the markets BUT an increase on how the system values them ONCE, and preferably alot higher than it is currently. also you should put future rewards into the valuation.

a company might spend 10million on a factory, would it
a value it at 1million OR

b value it at 11 million because it should produce future profits

c value it at 50 million because it could sell it to a competitor for 60million which results in even more profit

Guest · Post by **Guest** » 08.09.2009, 20:04

On that line you should also consider the price of stones, wood and steel spent on expansions.

On my opinion FA should remain fixed, cause with your idea just imagine, a player build and expand a red factory till 2.000sqm, on his FA it counts only 10.100.000,00

Guest · Post by **Guest** » 08.09.2009, 21:12

and another thing, if you value your f.a. by the price you paid for stones, steel&wood, then the companies that expanded when market price for raw materials was low wouldnt have as much f.a. than those that expanded when prices were high. even worse for those that feed their buildings with self made raw materials

Guest · Post by **Guest** » 09.09.2009, 04:57

Azer wrote:

FA = FIXED ASSETS

It wouldn't be called FIXED assets if it wasn't fixed and changed with the market, would it? Laughing

Azer, Fixed Asset is "fixed" is because it is not to be liquidized to cash in the current or upcoming fiscal year, not because it's price is always fixed.

kingrewt, even though you are correct, the fixed asset should be reevaluated based on current market price as like real life, kapilands 100% wont change it due to they want almost 100% fair game, which is quite boring sometime.