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This might be different in various countries, but in general companies cannot play games with depreciation. The financial audit is done according to certain rul
by tyldum 7y ago
This might be different in various countries, but in general companies cannot play games with depreciation.
The financial audit is done according to certain rules and common practices.
In reality some of these investments might be hard to properly calculate and audit, but simply reporting them as zero is malicious.
EBITDA numbers should provide the insight into profitability without hiding anything.
- dmurray 7y agoIt's generally fine to mark down your assets faster than they actually become obsolete, so you can take all the depreciation in year 0 if you want. Marking them down slower and overstating profitability is not so cool.