Silicon Investor (SI) -- The First Internet Community

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.

Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: Sal D who wrote (7213)	7/26/1998 10:44:00 PM
From: milesofstyles	Respond to of 29382

joe, not only the intangibles but all assets...the furniture example i have been trying to illustrate is a general asset, not an intangible. i seem to have confused that aspect a bit by combining the two in the same post at one point. by making the furniture an asset one company adds to their balance sheet and expenses the cost over time on their income statement, over this period of time an account is kept called accumulated depreciation,which reflects the reduction of the assets on the balance sheet...the other company that just expenses the furniture adds nothing to the balance sheet and takes an immediate hit to the income statement, but only once. a reason for a company to do this might be for tax purposes. this is how the decisions are based on current financial positions as i have stated...one company wants to boost their balance sheet for credit reasons(for example), while the other wants to expense it for tax purposes as another example. i hope it can be seen that these types of management decisions will affect financial ratios due to the results of the changes on balance sheet and income statement. milesov