Last week, I wrote about current aggressive accounting practices. This week, I’m going to write about future aggressive accounting that will be practiced. How can I so confidently predict the future? I’ve been doing this a long time. Some things are easy to forecast. What’s the accounting treatment I will Continue Reading
No Accounting For Taste: Reviewing Lemonade’s Revenue
I was looking at Lemonade’s 10-K the other day and noticed something startling and wondered how I had never noticed it before. Lemonade uses inappropriate accounting for its reinsurance which has the effect of inflating its revenue. Importantly, there is no impact on net income, so this effect is purely Continue Reading
Apple Destroys Value Through Stock Repurchase
Stock buybacks are one of the most misunderstood areas of corporate finance. From anti-capitalism types who rant about how evil buybacks are to CEOs who do them because they think it “helps the stock” to investors who often think they’re more important than growing the company, most common views on Continue Reading