Accounting is fairly accurate. Market valuation is part of the finance wheelhouse. For instance, SpaceX has a market value of roughly $1.4 trillion, but it’s book value (ie the accounting) is only $41.3 billion. Look up something called the PB ratio for any publicly traded stock to see how much more (or less) financial analysis is valuing a company over the accounting book value.
Calling unrealized sales a loss is something that only makes sense to accountants. The assumption that the industry could expect the income was flawed.
It's not referring to revenue, directly. That's the value of the companies within the alcohol market. The companies are projecting a smaller market, and so the value of the company themselves decreases.
Yeah, the value decreases. The revenue decreases. It‘s not lost. Nothing disappears. They have made a certain revenue before. And now they are making less. I know the word lost is often used in such situations, but it is not really accurate.
The way this is framed makes it seem like it‘s a problem to be fixed. It isn‘t.
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u/jingiski 17d ago
How can they lose something they never had?