Originally Posted by
Kirstey
How can my share increase in value for an aeroplane that was even sh1ttier than when i started!!???
Because in your example the value of the cash asset in the bank has increased more than the value of the engine asset has decreased.
Assets - liabilities = shareholders equity
Cash is the ultimate asset until you have spent it. You have only spent it when you have paid the invoice. (There are things like tax which might be considered due before they are in real life, but not engine maintanance)
The only purpose of the engine fund is to prevent cash flow problems i.e. having to put a liability (loan) on the books at a later date. It is an asset until spent.