Value Of Assets - Recalculating Current Value

[Digger]

With the change in requirements where it seems, you have to be able to show a substantially stronger company than its liabilities, for me at least one way would appear to be actually showing the market worth of some land our company owns and has developed over what we originally paid for it. In essence we acquired farm land for a song and then have developed it meaning in commerical terms its value has risen from circa 1500 baht a TW (whch is what its currently shown in our audited balance sheet as) to a market value of 22,000 baht a TW (based on recent bank valuation). This would have an impact on our balance sheet of at least doubling our assets to be over 30,000,000 baht from current level of circa 14,000,000 baht. We have director loans that also sit around 12,000,000 baht + our original capital of 2,000,000 baht. Our income is good enough to cover all the salaries of not only our expat staff but also all our Thai staff at circa 6,000,000 baht per annum versus expenses of some 3,000,000 baht however we keep re-investing this income to do more activity and acquire more assets so its not looking like pure profit.

The question is does anybody know what is the accepted methods of valuation? It appears the land office are still using the old value of circa 1,500 baht. Would a bank valuation be considered acceptable in the company accounts or otherwise do we need to hire a specialist valuation company to make a judgement on current value. Now is the time I need to do this as our year end just closed and my work permit is due at end of December.

Many thanks