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Expenses affect Income
Actually, expenses do NOT reduce one's net assets. Net assets are affected by liabilities, but liabilities are really 'future' expenses. Expenses affect the bottom line - your net income/profit. So, companies still get to report large asset values, which works well for securing additional capital, loans, etc. At the same time, they would report less income, which means they need to make more profit by selling more, or reduce the wages they pay in the form of stock options.
Posted by: nomorems   Posted on: 07/20/04 You are currently: a Guest | Members login | Terms of Use

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Money doesn't grow on trees  Nigel Johnstone | 07/20/04
I'm guessing...  rapson | 07/20/04
Quite the opposite I think  Nigel Johnstone | 07/20/04
... But Options Do  Dan__ | 07/20/04
The 10k is for the investors  Nigel Johnstone | 07/20/04
I have to agree...  el1jones | 07/20/04
The FASB's own definition...  bjbrock | 07/20/04
Expenses affect Income  nomorems | 07/20/04
Expense or not  Domb2 | 07/21/04
Expensing options could make your income negative  Dan__ | 07/27/04
The FASB and other proponents...  bjbrock | 07/20/04
Again  nomorems | 07/20/04
Message has been deleted.  linuxcad_is_crap | 07/20/04
Message has been deleted.  linuxcad_is_crap | 07/21/04
Only in Washington...  NobodyHome | 07/22/04

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