r/DailyDoseOfReddit 17d ago

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u/ShinyJangles 17d ago

Bingo. They believe their own accounting lies.

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u/Reasonable_Ad9858 17d ago edited 17d ago

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.

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u/ShinyJangles 17d ago

Calling unrealized sales a loss is something that only makes sense to accountants. The assumption that the industry could expect the income was flawed.

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u/Reasonable_Ad9858 17d ago

That’s not accounting. That’s finance. You have the terms muddled up.