If all entries on balance sheet are based on market values, how would balance sheet be affected by a decrease in interest rates?
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what kind of company is it? Pretty tough to just give a general answer
Overall I doubt there would be a huge change but that would depend on leverage, what they're invested in etc. (basically what are the larger assets and liabilities). I think the value of the B/S would go up a little bit but not by much.
I have a feeling you're asking to go line-by-line on a random B/S thru each account but that would take a while to type
The only way a BS would be affected by interest rates is the Retained earnings would be higher if IR go down (as NI goes up) also cash would be higher if IR go down....I am speaking of a non finance company...
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