Re:The Long-Term Stock Exchange Comes to Life
by toast0 on Saturday December 30, 2017 @10:53PM
(#16039258)
If I'm an investor, I want comparable accounting which means GAAP; if I'm a founder, maybe I just want to know what's in the bank account and don't want to deal with deferring recognition of income for long term contracts.
External scrutiny and pressure is a mixed bag. It probably reduces the chances of doing something stupid that destroys the company, but it also reduces the chances of doing something stupid that changes the world.
Re:The Long-Term Stock Exchange Comes to Life
by jnordwick on Sunday December 31, 2017 @01:17PM
(#16041804)
Non GAAP tends to be more informative though when looking for specifics on cash flow for example. I see more people using pro forma figures instead.
Re:The Long-Term Stock Exchange Comes to Life
by twobyfour on Sunday December 31, 2017 @08:48AM
(#16040538)
They are in many cases. But they can also be prohibitively time consuming and expensive for a small business - be it your corner bodega or the 5-person startup working out of your neighbors basement.
aren't all these good things? Prevents both scamming, as well as ensuring that the founders take a careful look at their business, and that it isn't purely fueled by stock/investment, but is generating profit?