Re:Fantasy Math Is Helping Companies Spin Losses into Profits
by api on Monday April 25, 2016 @04:52PM
(#11567262)
Are you sure this isn't just hiding profits for tax purposes?
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Re:Fantasy Math Is Helping Companies Spin Losses into Profits
by dharmon on Monday April 25, 2016 @04:58PM
(#11567307)
Statements required by the SEC are not the same as those sent to the IRS.
For example, a company can use straight-line depreciation in their GAAP statements, but use accelerated depreciation for tax purposes. The difference becomes a tax credit on the balance sheet.
The IRS is much less likely to fall for shenanigans than investors.