accounting discussion problem

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I want a answer relate to the  Asset=Liability+equity function but not hard explanation.


You work as an accountant for an architectural company that desperately needs additional financing to continue in business.  Your company’s president is meeting with the manager of a local bank at the end of the month to try to obtain this financing.  The president has approached you with to discuss how to  improve the company’s reported financial position.


1.    The president claims that a piece of land that the company purchased to build the new office has gone up in value in the last several months due to a real estate boom in the area.  For this reason he asks you to pull up the latest appraised values and adjust the balance of land to the latest appraised value.  In no more than 200 words, explain what you plan to do and why?

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