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Are you sure this isn't just hiding profits for tax purposes?
by api 11y ago
Are you sure this isn't just hiding profits for tax purposes?
- dharmon 11y agoStatements 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.
- kspaans 11y agoYou can't (quite) choose how you report your profits to the IRS. This is about reporting the company's books to investors.
- ef4 11y agoIf that's the goal, they're doing it badly since the non-GAAP measures show higher profits.