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Response to PeeJ52 (Reply #14)

Sat Feb 9, 2019, 05:51 PM

24. Another poster pointed out that there are

two accounting schemes used, and they differ in how you treat depreciation.

Since one is for taxes is used consistently that way, that's one number. And it's valid.

The other is used for corporate reports. It's used consistently that way, and that's a second number. And it's valid.

The org I was with in the '90s had used some sort of cash accounting and then switched over to GAAP. Those who had been reading the reports for years were horrified at the new reports. In spite of the fact that little had changed. It was a question of figuring out what the numbers meant in a given context, where the liabilities were, were the assets were, and how things were being moved around. Took old-timers a few months to come to grips.

What old timers really had trouble with was reconciling the current scheme with past year's numbers. So somebody had to go back and redo a lot of the reports for the previous few years to make the historical trendlines reasonable.

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Arrow 25 replies Author Time Post
PeeJ52 Feb 2019 OP
Dennis Donovan Feb 2019 #1
ooky Feb 2019 #9
PeeJ52 Feb 2019 #11
Dennis Donovan Feb 2019 #12
PeeJ52 Feb 2019 #15
dalton99a Feb 2019 #2
Initech Feb 2019 #3
Me. Feb 2019 #4
PeeJ52 Feb 2019 #5
fescuerescue Feb 2019 #7
fescuerescue Feb 2019 #6
safeinOhio Feb 2019 #8
fescuerescue Feb 2019 #13
safeinOhio Feb 2019 #22
fescuerescue Feb 2019 #23
PeeJ52 Feb 2019 #14
fescuerescue Feb 2019 #16
LineLineLineNew Reply Another poster pointed out that there are
Igel Feb 2019 #24
csziggy Feb 2019 #21
superpatriotman Feb 2019 #10
fescuerescue Feb 2019 #17
joc46224 Feb 2019 #18
PeeJ52 Feb 2019 #20
Power 2 the People Feb 2019 #19
Duppers Feb 2019 #25
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