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Musings on Markets: META Lesson 2: Accounting Inconsistencies and Consequences

CFO News Room

That skewing can affect valuation and pricing judgments about these firms, and correcting accounting inconsistencies is a key step towards leveling the playing field. I am not an accountant, and have no desire to be one, but I have used their output (accounting statements) as raw material in valuation and corporate finance.

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META Lesson 2: Accounting Inconsistencies and Consequences

Musings on Markets

In this post, I will revisit Facebook's most recent earnings report, and argue that while it contained disappointing news on growth and profitability, the bad news was exaggerated by systematic inconsistencies in how accountants categorize expenses, skewing earnings and invested capital down in firms that don't fit the accounting prototype.

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Musings on Markets: Data Update 5 for 2022: The Bottom Line!

CFO News Room

Even though we live in an age where user platforms and hyper revenue growth can drive company valuations, that adage remains true. Accounting Profit Measures. To understand the different measures of accounting profit, let us look at how each measure of profit is computed in an income statement. Implications.

Marketing 130
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The Difference Makers: Key Person(s) Valuation

Musings on Markets

Of course, and with small businesses, especially those built around personal services (a doctor or plumber’s practice), it is part of the valuation process, where the key person is valued or at least priced and incorporated into valuation. To estimate key person value, there are three general approaches: 1.

Valuation 113
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Data Update 5 for 2022: The Bottom Line!

Musings on Markets

Even though we live in an age where user platforms and hyper revenue growth can drive company valuations, that adage remains true. Accounting Profit Measures To understand the different measures of accounting profit, let us look at how each measure of profit is computed in an income statement.