Jul 18 2018, 12:04 PM
Stock is a short term/mid term asset/high liquidity you calculate at market value.
Use this method will be easy and handy.
On the other hand, you can apply fair value to your property / stock if you really want to calculate the yield. Of course Fair Value is very subjective but you will have better feel. E.g. Bought XXX apartment 400K. Current Market Value is 600K. So you think you can sell it immediately for 560K. Then U can apply 'Fair Value' as 560K to use it in your yield calculation. Fair Value is very useful but you have to be honest. If you buy 500K and current market value at 300K and actually you think you can only sell it at 260K, so you will apply fair value between 260K-300K.
Applying which value in yield calculation will depends on your honesty and feel good factor.
BTW, I'm not talking about Accounting for company.
QUOTE(rapple @ Jul 17 2018, 02:39 PM)
You are right that yield will not shown in any net worth statement but it still comes from the properties.
How can you valued your properties at market price and have your yield based on the cost price. Isn't this misleading on the yield?
Are you going to calculate your dividends received against the current stock market value also?
How can you valued your properties at market price and have your yield based on the cost price. Isn't this misleading on the yield?
Are you going to calculate your dividends received against the current stock market value also?
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