"argument should not be about whether stock options should be expensed, or whatnot. The true argument should be whether companies can issue "pro forma" numbers. That, in my opinion, is the problem"
Nah, but as you correctly point out, it is important to note that all these accounting thingys are each separate issues.
The are a thousand of them that come up for one company every year.
THE PROBLEM IS THAT THE CPA'S SAY THAT THEY ARE NOT RESPONSIBLE FOR THE CHARACTARIZATION OF THE REPORTS.
To paraphrase Buffett, if the accountants are not responsible for the numbers who is??
No legislature can retroactively solve this problem but passing specific laws, they are too corrupt.
IF the accountants and the companies were held responsible by individuals every day and could possibly be sued, they would do the best they can.
And a court would decide if they were right.
What would happen is what used to happen, 15 years ago. The company booked the item and the accountant would try his best to determine if this is correct.
If there were any substantial question, it would be stated one way, with an explanation as to the other way. A CLEAR EXPLANATION, NOT OBFUSCATORY BULLSHIT.
In court, vague explanations are no explanations. |
