Quote Originally Posted by Renton2010:
Let me explain how reporting works.
A corporation shows as much profit as it can, following FASB guidelines, when it files its financial statements with the SEC.
This only makes perfect sense, as it wants to give investors a warm and fuzzy feeling by showing profit growth.
A corporation files a completely different set of financial statements (read tax form) to the IRS, showing as little profit as it can.
Ive seen you post this several times and never understood the relevance of why you posted it?
What does the way GE categorizes earnings for the markets and shareholders versus the IRS.
The IRS isnt a regulatory agency by nature, yes they can investigate and they do audit, but their real purpose is to collect taxes for the government..the audit aspect is due to the inherent nature of man to exploit loopholes.
FASB is not a regulatory agency, they are the body which holds accountants to certain reporting and auditing standards, if companies were not required by the SEC and exchanges to perform audits, the FASB would not exist.
You do make a nice transition point though..companies all the time get caught cheating FASB and NYSE/NASD rules, the SEC catches companies cheating, the IRS catches companies cheating.
To me the measure of success isnt not getting caught or the ability to find a hole and expand it, the same thing happens in our legal system..then the hole has to be closed even tighter because people abuse and exploit the inefficiency.
I think the excuses being made for corporations here are absurd, nor do I think the rationale of companies not paying but people do is very short sided. The corporation exists in this country, THEY more than the individual enjoy benefit of the government. Without the worker they have no business, without the government the liklihood of foreign exchange is dramatically different. Corporations gain monster advantage from state and municipal grants, freebies and assistance.
Hot Forum Topics
