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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Mike M2 who wrote (83086)	8/17/2000 9:42:18 PM
From: Exacctnt	Respond to of 132070

Mike, YES, Companies keep two sets of books. One is the public version in which the external reporting to shareholders and the SEC is kept. The other is the tax books. The difference between the two usually is related to accounting rules as to when and how transactions can be recorded and the tax impact on those transactions. A key indicator of differences in the two sets of books can be determined by viewing Deferred Tax accounts on a company's balance sheet, that is if it is detailed enough. When it comes time to calculate a company's effective tax rate the tax books are reviewed to determine what should be and/or what may be used to adjust taxes paid to the government. Tax benefits from options are included in the review and in the calculation of the effective tax rate which is used in the public statements.