The Corporate Earnings Mirage

Comments (1)

  1. Doug Dagostino CPA says:

    I am a CPA with 30+ years experience in corporate accounting and tax. I have seen companies use extraordinary items for decades and in my opinion it is an ethical accounting abuse, allegedly legal, but it continues to be an abuse by companies. When extraordinary items occur every 2,3 or 4 years are they really extraordinary or do companies effectively cheat the market of their real results. Stop the shenanigans and report the results of ALL activity. Explain in your notes if you feel an item is ‘unusual’ and won’t repeat in the future (legal to predict the future?) but earnings must and should include everything.


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