What is wealth statement?
Wealth statement is divided in two parts
- Statement of net assets
- Reconciliation of net assets
Statement of net assets
It is a list of all assets and liabilities [personal as well as business] as at the closing date of year i.e. 30 Jun
Example of assets
- Agricultural property
- Commercial, Industrial, Residential Property (Non-Business)
- Business Capital
- Equipment (Non-Business)
- Animal (Non-Business)
- Investment (Non-Business) (Account / Annuity / Bond / Certificate / Debenture / Deposit / Fund / Instrument / Policy / Share / Stock / Unit, etc.)
- Debt (Non-Business) (Advance / Debt / Deposit / Prepayment / Receivable / Security)
- Motor Vehicle (Non-Business)
- Precious Possession
- Household Effect
- Personal Item
- Cash (Non-Business)
- Any Other Asset
Examples of liabilities
- Credit (Non-Business) (Advance / Borrowing / Credit / Deposit / Loan / Mortgage / Overdraft / Payable)
Please note that COST at which the asset was actually purchased by you, is required to be declared not current market value of assets.
Reconciliation of net assets
Reconciliation is required to be made for total net assets balance with total net assets held immediately last year so that any change [increase / decrease] can be identified.
This is very important step in filing wealth statement as any increase more that net income shall be treated as income of the person. Therefore be careful while completing this step.
This video tutorial would help you to get an idea.