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Per SEC rules, once a business reaches a certain size it has to be detailed out on the financials. That's why the ads business is reported separately now

by di456 4y ago

deleted 4y ago
[deleted]
alberth 4y ago
I'm not certain that is accurate. E.g. Apple famously doesn't report App Store revenues. Instead it's just part of their "services" revenue which includes several other things.
- di456 4y ago
  You can read more about it under "Accounting Pronouncements Recently Adopted" in this 10k report, page 48 https://www.sec.gov/Archives/edgar/data/1018724/000101872419000004/amzn-20181231x10k.htm https://www.sec.gov/Archives/edgar/data/1018724/000101872419... Edit: guess it was FASB, not SEC
  - alberth 4y ago
    > "In May 2014, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) amending revenue recognition guidance and requiring more detailed disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. We adopted this ASU on January 1, 2018 for all revenue contracts with our customers using the modified retrospective approach and increased retained earnings by approximately $650 million." The only section in the 10K referencing FASB is above. This is related to reporting CUSTOMER contracts, not a requirement to report Business Division revenue (like Amazons Ad Business). The reason for this change, which again is unrelated to the original topic at hand, is that it posses a financial risk to investors if X customer represents a significant portion of the companies revenue.
    - di456 4y ago
      Farther down in that section: > Certain advertising services are now classified as revenue rather than a reduction in cost of sales Reading in-between the lines on this, advertising flipped from retail contra-cogs to it's own revenue segment. Advertising biz got to big to report like that.

Per SEC rules, once a business reaches a certain size it has to be detailed out on the financials. That's why the ads business is reported separately now

by di456 4y ago

Per SEC rules, once a business reaches a certain size it has to be detailed out on the financials. That's why the ads business is reported separately now

deleted 4y ago

[deleted]

alberth 4y ago

I'm not certain that is accurate. E.g. Apple famously doesn't report App Store revenues. Instead it's just part of their "services" revenue which includes several other things.

di456 4y ago
You can read more about it under "Accounting Pronouncements Recently Adopted" in this 10k report, page 48 https://www.sec.gov/Archives/edgar/data/1018724/000101872419000004/amzn-20181231x10k.htm https://www.sec.gov/Archives/edgar/data/1018724/000101872419... Edit: guess it was FASB, not SEC
- alberth 4y ago
  > "In May 2014, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) amending revenue recognition guidance and requiring more detailed disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. We adopted this ASU on January 1, 2018 for all revenue contracts with our customers using the modified retrospective approach and increased retained earnings by approximately $650 million." The only section in the 10K referencing FASB is above. This is related to reporting CUSTOMER contracts, not a requirement to report Business Division revenue (like Amazons Ad Business). The reason for this change, which again is unrelated to the original topic at hand, is that it posses a financial risk to investors if X customer represents a significant portion of the companies revenue.
  - di456 4y ago
    Farther down in that section: > Certain advertising services are now classified as revenue rather than a reduction in cost of sales Reading in-between the lines on this, advertising flipped from retail contra-cogs to it's own revenue segment. Advertising biz got to big to report like that.