Since most businesses, including metalcasters, have total value in excess of their net assets
, this approach normally is used only in situations where the business is losing money or its earnings do not support its net assets
One organization has an ongoing economic interest in the net assets
of the other.
Investment income (interest and dividends) is recognized as revenue in the period it is earned and gains and losses are recognized as changes in net assets
in the accounting periods in which they occur.
The proposal requires not-forprofit organizations to report the amounts of their total assets, liabilities and net assets
in a statement of financial position; the changes in their net assets
in a statement of activities; as well as the changes in their cash and cash equivalents in a statement of cash flows.
The typical payout period for a practice sale always has been roughly five years, usually without interest, and the thumb rule price has stayed close to one year's fees, plus net assets