Regardless of how it's accounted for, Omagine LLC still owns land rights appraised at over $700MM. If OMAG goes to $1 because it's only a footnote, I'll be buying a lot more OMAG!

Under GAAP, when you buy an asset, it goes on the books at cost, not market value. If you buy land that's worth $200K and you pay only $150K for it, it goes on the books at $150K and stays there - even if the land keeps going up in value.

http://www.investopedia.com/terms/h/historical-cost.asp

Of course, Omagine LLC doesn't use GAAP, so the accounting might be different. Also, Omagine has land rights, not land. So it's an intangible asset. And they didn't buy it with cash. They used shares of the LLC. I believe Omagine's argument to the accountants is that the LLC shares used to acquire the land rights are worth $700MM+ because no other valuation is available other than the appraisal.

But I'm not in OMAG for the project's $700MM+ land value. I'm in it for the $2.5 Billion of future net positive cash flow!