Two reasons why the value of a business is not included in the financial statements are:
- The financial statements are generally based on the company's past recorded transactions. The value of the business will more likely be based on the perceived future transactions.
- The accountants' cost principle prohibits a business from reporting some highly-valued assets such as trademarks, brand names, and an effective management team (assuming these were developed internally).
In short, the financial statements provide only some of the information needed when attempting to determine the value of a business.