[absherwin]

That’s true for most adjustments. Buffett also suggests investors ignore income statement effects of marking securities to market.

“I must first tell you about a new accounting rule – a generally accepted accounting principle (GAAP) – that in future quarterly and annual reports will severely distort Berkshire’s net income figures and very often mislead commentators and investors. The new rule says that the net change in unrealized investment gains and losses in stocks we hold must be included in all net income figures we report to you. That requirement will produce some truly wild and capricious swings in our GAAP bottom-line.” https://www.berkshirehathaway.com/2017ar/2017ar.pdf