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Sympathy may have been a poor choice of word. What I meant was: accounting considerations should not have any bearing on how companies treat employees. Especial
by ahuth 12y ago
Sympathy may have been a poor choice of word. What I meant was: accounting considerations should not have any bearing on how companies treat employees. Especially when the 'accounting' is not something that actually affects the money coming in/out of the company.
The liabilities may matter to investors, but that doesn't mean that they actually affect the business. If I have all of my vacation days left or none, there is zero impact on the the company's business. Value is not effected at all.
- dragonwriter 12y ago> The liabilities may matter to investors, but that doesn't mean that they actually affect the business. If they affect investors, they (1) effect the current owners, serving whose interests is the whole purpose of having a business, and (2) they affect the company's ability to secure financing and the terms of that financing, which affects every aspect of its business. So, no, you're just plain wrong here. > If I have all of my vacation days left or none, there is zero impact on the the company's business. It has exactly the same impact on a company's business as any other debt, which is substantially more than none.
- darkarmani 12y ago> The liabilities may matter to investors, but that doesn't mean that they actually affect the business. If I have all of my vacation days left or none, there is zero impact on the the company's business. Value is not effected at all. That's completely untrue. If you are billed out at some rate X, then having 2 weeks of vacation coming up this year directly impacts future value vs having 0 vacation days. That's X * 2 * 40 hours of future value. It affects value in the same way that any debt affects value.