I keep hearing businesses report earnings (or losses) with a disclaimer enumerating charges due to an accounting change. They claim that, technically, their net profit is better than it appears on the surface because of these one time (ostensibly artificial) "charges". I'm not an accountant, but this seems to defy logic; how can this always be a negative figure for companies that seem to do this every couple years?
Are companies not obligated to report an artificial gain from an accounting system change to the SEC, and if so, why does this never seem to be reported?
I'm not referring to writeoffs; I realize that companies play games with these all the time, holding or dumping them depending on their tax, dividend, and stock value situation
2007-01-26
05:13:33
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2 answers
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asked by
kena2mi
4