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by vivegi
1154 days ago
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From the article: > “Certain costs associated with corporate initiatives supporting consumer-facing activities, previously reflected in unallocated corporate costs, are now allocated to Google Services; and centrally-managed shared research and development activities, including our shared developer tools, are now allocated based on an updated measure of the relative benefit derived from the services,” Alphabet said in a filing. > “As a result of these changes, more of the previously unallocated corporate costs are allocated to our segments, and more of certain previously allocated costs are allocated to our consumer-facing Google Services products and less to Google Cloud enterprise products.” I guess the new tax rule on accounting of software developer salaries as amortized cost over 5 yrs is expected to positively impact profitability. Looks like they used this to also reallocate some central costs to various business units. |
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