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by jacques_chester
5578 days ago
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> Most of the hard problems are to do with depreciation, and the legalities of how you classify them. I would generalise that to say that all the hard problems in accounting are ones of classification. Does sale X fall in 2010 or 2011? Do we book the inventory when we order it, when it is delivered to our warehouse, when it is delivered to our shop, or all three? And if we use some combo, how do we combine them in LIFO calculations? We've just donated $100,000 to Fashionable Cause, a charitable foundation founded by Irish rockstar Nobo and in exchange he will wear our platform shoes exclusively. Do we book this under philanthropy or marketing? If philanthropy, do we consider it part of the overhead cost for the shoes sold? And so on and so on. Most of the big bucks in accounting comes from coming up for clever excuses as to why something should be categorised in a certain way. |
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