Ask Michael Burke Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Ask Michael Burke

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Don Lloyd who wrote (82707)	8/7/2000 8:52:15 AM
From: Craig Richards	Read Replies (1) of 132070

Don - I'm not familiar enough with accounting to comment in depth, but from a common sense point of view - if Intel distributes their shares of Micron to randomly selected individuals, would that be "cost free to the corporation" in the same way? And if distributing shares of Micron is "cost free", what about distributing money? What about distributing products? My best guess is that distributing shares of stock is "cost free" due to commonly accepted accounting rules. Just because that's what the accounting rules say, doesn't mean that it's valid in every sense, only that it's valid for a certain type of accounting. Clearly accounting is somewhat subjective, as companies keep 2 sets of books - one for the SEC and another for the IRS. So you must modify your statement to indicate that it is cost free according to a certain set of accounting rules. Perhaps the accounting rules need to be changed?

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next