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In response to
"This is an interesting thread on the Trump finances story. Would be interested to hear from our accounting friends (nmblink)"
by
ralph wiggum
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There's no details in the accounts before they started operating so you can't really tell much.
Posted by
spamlet
Sep 29 '20, 10:28
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You can see that they are loaning money to the course to build stuff. That makes sense if you're building a golf course and resort.
One important thing to note that I don't know if Adam understands is that you don't "write up" real estate and other assets on financial statements. They are carried at cost less depreciation. So he can't be unfairly inflating values, which he seems to be eluding to. You also typically don't "write down" hard assets for their value falling for the same reason unless something happens like a building falls down and you don't replace it.
I don't have details of what they did to the course or anything like that but if you told me these are the statements of a resort long in development being funded by the parent company I'd say "yeah, sounds right". A lot of times the parent will fund international subs, especially money losing ones, because it's easier to get a loan at the parent than at the sub. And we know that Trump has a shitton of loans.
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