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Ray McCormack
Nordar Innovations.
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Posted - 2010.06.16 11:58:00 -
[1]
Where do I find the previously mentioned 15b+ income figure?
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Ray McCormack
Nordar Innovations.
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Posted - 2010.06.16 16:20:00 -
[2]
 Originally by: Varo Jan
Was it worth doing? Absolutely.
How long did it take you to prepare these financials? And now that you have a methodology in place, how long do you envisage them taking you in the future?
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Ray McCormack
Nordar Innovations.
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Posted - 2010.06.16 16:57:00 -
[3]
Originally by: Varo Jan
The formats are simple, believe it or not.
And my argument is that these generally accepted reporting standards are not particularly suited to our little sandbox at its current level of maturity. These layouts exist because they have evolved over time to provide information to relatively well educated analysts (usually for advanced reporting such as gearing, etc), our situation differs from the model we find they have catered for.
In EVE I believe the requirements to be accurate, verifiable measurements of asset value and profit. And whilst that can obviously be achieved by adopting the above model, there is a simpler, much more efficient way of achieving the same goal.
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Ray McCormack
Nordar Innovations.
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Posted - 2010.06.17 06:54:00 -
[4]
Originally by: Varo Jan
How?
By having profit as a balancing figure on the balance sheet.
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Ray McCormack
Nordar Innovations.
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Posted - 2010.06.17 15:37:00 -
[5]
Originally by: Varo Jan
Ouch. You'll never know how you made a profit if you do it that way. You'd never be able to have your accounts audited. It's also quite possible that errors would go undetected. I wouldn't recommend it, Ray.
The only requirements for an audit would be to prove the original value of the assets and their current valuation.
The other stuff just isn't necessary in our infant market; or is achievable through other, more effective means (such as analysing profitability of specific aspects of your business).
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Ray McCormack
Nordar Innovations.
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Posted - 2010.06.17 15:49:00 -
[6]
Originally by: Magnu Stormhawk
The problem is that common eve reporting tends to value assets and stock at current market value, and that ends up with taking profit on stock that hasn't sold yet, and taking unrealised gains on revalued assets as profit.
Write a contra to your liabilities/equity for unrealised appreciation/depreciation.
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Ray McCormack
Nordar Innovations.
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Posted - 2010.06.17 16:19:00 -
[7]
Originally by: Varo Jan
What you're suggesting presents an inflated value. Now IPO managers like to do that because it inflates NAV and their share price.
It presents a realistic value. Investors should be aware of the true or potential value of the assets.
Remember, all I'm interested in displaying is the asset-backed value of a corporation and its profitability. That is key to what I see as being our current requirements, others may arise with time.
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Ray McCormack
Nordar Innovations.
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Posted - 2010.06.17 17:03:00 -
[8]
I agree with valuing current assets at cost, but fixed assets that will see a significant price variation over their lifetime should be treated differently. You have to appreciate/depreciate them.
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Ray McCormack
Nordar Innovations.
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Posted - 2010.06.17 17:18:00 -
[9]
Consider artwork as their RL counterpart, I think that's the closest example we'll find. Someone phone all those Asian companies that bought Van Goghs and the like in the late eighties / early nineties and ask them how they're listed on their balance sheets.
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