Showing Precious Metals on Balance Sheet?

[b***@gilanet.com]

Our company bought several ounces of gold boullion as an investment
recently.

We're on an accrual fiscal year accounting basis.

I figure the initial transaction would be a simple credit cash, debit
an asset called precious metals or some such (unless you have a better
suggestion of what to call it).

Does it work like other assets where you continue to show it at the
cost/basis until it is sold?

I have a feeling my boss is going to want me to make adjustments every
month to show it at it's value (he absolutely HATES showing
depreciation, if that gives you an idea of his feelings lol) I had
kind of planned to show the market value in "notes".

Thanks for suggestions.

[San Diego CPA]

Post by b***@gilanet.com
Our company bought several ounces of gold boullion as an investment
recently.
We're on an accrual fiscal year accounting basis.
I figure the initial transaction would be a simple credit cash, debit
an asset called precious metals or some such (unless you have a better
suggestion of what to call it).
Does it work like other assets where you continue to show it at the
cost/basis until it is sold?
I have a feeling my boss is going to want me to make adjustments every
month to show it at it's value (he absolutely HATES showing
depreciation, if that gives you an idea of his feelings lol) I had
kind of planned to show the market value in "notes".
Thanks for suggestions.

You haven't given enough info to answer acurately. If you're company is in
the business of making these types of investments or could otherwise be
considered a "dealer" in precious metals, or possibly even a dealer in
securities or similar investments, they you'll likely be required to
"mark-to-market" at the end of each period for tax purposes. Your treatment
for financial statement purposes may vary. If your company is not in the
business of investing but rather just wanted to park some cash somewhere on
a short or long-term basis, your proper treatment will likely be to hold the
investment on the balance sheet at historical value and only book a gain or
loss upon the ultimate disposition of the gold boullion.