bought a property on auction so it was recorded at cost. Now, for financing purposes I would like to show the property at market value, a significantly higher number. a. was it correct / necessary to initially record at cost in the first place. b. Can I now legitimately create a balance sheet showing the property at market and c. if so how do I get from one to the other w.r.t. entries and explanations.

It was correct to record the asset at cost, for all intents and purposes that was market value at date of purchase. Revaluation of assets is a legitimate accounting procedure so you increase the value of the asset and create an Asset Revaluation Reserve which is part of Equity. a note to the accounts should state the amount of the revaluation and the date of the valuation as evidenced by a registered valuer. You can expect the financier to carry out their own valuations

Thanks for that Paraclete. A quick follow up; just to verify, is it correct to assume no tax event is triggered here?Thanks again.

Thanks for that Paraclete. A quick follow up; just to verify, is it correct to assume no tax event is triggered here?Thanks again.

I cannot comment on what might happen in your jurisdiction