⚠️Automatic translation pending review by an economist.
As part of our partnership with Forbes magazine, read an opinion piece by Simon Ray, economist at BSI Economics, on the increase in corporate capital resulting from the recognition of capital gains from rising land prices on their balance sheets.
Through a simple accounting entry, companies’ equity could increase by €425 billion by 2022. A temporary change in the tax treatment of the accounting revaluation of corporate assets could encourage companies to record capital gains resulting in particular from the upward trend in land prices on their balance sheets. The resulting accounting recapitalizations could facilitate companies’ access to financing and support their investment capacity.
Click here to read the opinion piece
