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Somebody is confidently wrong. There is no standard definition for "cost of sales", or "cost of goods sold". No where in any GAAP or IFRS literate does it say
by tomnipotent 4y ago
Somebody is confidently wrong.
There is no standard definition for "cost of sales", or "cost of goods sold". No where in any GAAP or IFRS literate does it say that the term "cost of sales" have specific definitions other than a paragraph or two of ambiguous wording. Indeed, IAS is even careful to say "allocating costs to functions may require arbitrary allocations and involve considerable judgement".
The Xiaomi filing doesn't breakdown what it includes in cost of sales, so we're left guessing without a supplemental to fill in the details. You're welcome to make whatever wilder guesses you like, but they're still just guesses.
- refulgentis 4y agoLike I said, you're broadly correct, and specifically correct. It is unknowable, but, that's not helpful information. It's sort of like if there was an accounting message board where they bickered about it's unknowable if memory usage meant RAM or L2 cache because L2 cache is also memory I'm out, you're free to live in a world where you can't tell basic information about the health of a company because you're obsessive about ensuring anything you don't grok must be modelled as ambiguous by everyone else.