In areas where irrigation water rights are transferrable as in many western states, water rights may appear as a separate asset if a value can be determined separately from the land. Others include land purchase contracts or personal notes that have been termed over 10 years. Typically any loan or note with an amortization period greater than 10 years would appear in this category. However, firms in other sectors face the same issue. Separating working assets for the purpose of determining debt structure and debt balance is a reasonable request.
Balance sheets are normally prepared for separate entities even in a sole proprietorship.
GAAP guidelines in traditional accounting support that the business be reported separately from its owner. The exception is agriculture where producers and lenders prefer a consolidated or combined statement. A combined statement includes both personal and business assets and liabilities. Colorado State University, U.S. Department of Agriculture and Colorado counties cooperating. Cooperative Extension programs are available to all without discrimination.