Question

Your financial planning client is a wealthy entrepreneur who owns diverse businesses and real estate holdings. This client is concerned with the market value of his assets and has no desire to read financial statements based on GAAP. As your client put it, “you accountants make me write down the reported value of my buildings every year due to depreciation, but thankfully, my buildings keep going up and up in value.”

Is it a discreditable act for you to prepare market-value-based personal financial statements for your client? Justify your response.

Answer 1

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