R2O, RE: I guess I come back to taxable because selecting between alternative methods has a clear and practical metric: minimize money sent to IRS.
And GAPP net income has a similar clear and practical metric: maximize net income reported.
Accountants argue for years. Although Accepted eventually, the resulting 'Principles' are far from obvious or unanimous. The final 'Principle' turns on nuances of meetings and social gatherings.
I'd rather have that than your alternative, which is politicians gauging things based upon how much various industries bribe them, which has little to do with accurate financial statements. At least accountants are trained to put together financial statements.
Politicians argue for years, too, you know. And the resulting tax laws passed are far from obvious or unanimous. The final tax laws passed turn on nuances of committee meetings and back room deals.
Yet stock options have been with us for centuries and it seems odd that accountants have yet to construct anything Acceptable.
Well, they have, but politicians have thus far prevented them from incorporating things. Fortunately, the political winds have shifted.
I think I'd rather have the tax return, arcane though it may be, along with a worst case statement counting (just counting) the number of options that are outstanding. No fudging.
You won't get an accurate picture of the company, then. In 2000, Cisco was making money hand over fist. And yet their tax return showed zero income. And if you think there's no fudging on tax returns, you're living in a dream world. |
