What is wealth statement?

Wealth statement is divided in two parts

  1. Statement of net assets
  2. 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

  1. Agricultural property
  2. Commercial, Industrial, Residential Property (Non-Business)
  3. Business Capital
  4. Equipment (Non-Business)
  5. Animal (Non-Business)
  6. Investment (Non-Business) (Account / Annuity / Bond / Certificate / Debenture / Deposit / Fund / Instrument / Policy / Share / Stock / Unit, etc.)
  7. Debt (Non-Business) (Advance / Debt / Deposit / Prepayment / Receivable / Security)
  8. Motor Vehicle (Non-Business)
  9. Precious Possession
  10. Household Effect
  11. Personal Item
  12. Cash (Non-Business)
  13. Any Other Asset

Examples of liabilities

  1. 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.