[Foundation-l] Latest board resolutions

Sat Jul 29 07:05:15 UTC 2006

geni wrote:

>On 7/28/06, Ray Saintonge <saintonge at telus.net> wrote:
>  
>
>>That wouldn't do it.  Cash and equipment are both assets on a balance
>>sheet.  If it ever came to that, either could be used to satisfy a
>>debt.  Buying hardware just so that it can have an opportunity to
>>depreciate does not seem like a sensible strategy.
>>    
>>
>It reduces the value of your balance sheet. which reduces your
>atrativeness as a target.
>
Making purchases where the only reason is to reduce the asset value on 
the balance sheet does not strike me as sound fiscal management.

>>Although it's
>>important to plan for equipment breakdown and obsolescence there is also
>>a value to delaying purchases.  The same $10,000 that you might spend
>>prematurely today for a desired piece of equipment might give you a more
>>advanced piece of similar equipment a year from now.
>>    
>>
>But we need the equipment now.
>
That's usually a good reason for buying new equipment.