Re:Data is not an asset, it’s a liability
by anders30 on Friday September 11, 2015 @12:38PM
(#10204657)
I agree with your comment but I wanted to share:
I have constructed the argument before that if you consider functionality as an asset and code as a liability, you can consider a refactor as retained earnings (or stockholder's/owner's equity, whichever you prefer). Along those lines, refactoring code becomes much more palatable.
I know it's a flawed analogy because refactoring costs money, so it isn't really RE. It did help me answer a question along a similar vein to yours ("...how do you see your balance sheet improving while still being balanced?"); where I was assuming a reduction in liabilities satisfied "...balance sheet improving...".
I have constructed the argument before that if you consider functionality as an asset and code as a liability, you can consider a refactor as retained earnings (or stockholder's/owner's equity, whichever you prefer). Along those lines, refactoring code becomes much more palatable.
I know it's a flawed analogy because refactoring costs money, so it isn't really RE. It did help me answer a question along a similar vein to yours ("...how do you see your balance sheet improving while still being balanced?"); where I was assuming a reduction in liabilities satisfied "...balance sheet improving...".