§ 8010 Asset Overvaluation Adjustment

• •If a company says their stuff is worth more than it really is, the boss in charge can make them fix it.
• •The company has to either say their stuff is worth less or set aside extra money to cover the difference.
• •This is to make sure the company isn't lying about how much money they really have.

A bank says their old buildings are worth $1 million, but they're really only worth $700,000.

The boss in charge can tell the bank to either say the buildings are worth $700,000 or set aside $300,000 to cover the extra they said.