§ 31502 Asset Valuation Limits

• •Companies can't pretend their stuff is worth more than they paid for it.
• •They need permission from the boss (commissioner) to do this.
• •They must keep honest records of what they own and how much it cost.

A company buys a computer for $1,000 but writes in their books that it's worth $2,000.

This is not allowed. The company must record the computer as $1,000 unless they get special permission to say it's worth more.