tag:blogger.com,1999:blog-23683658.post2168165110452305514..comments2024-03-25T05:23:41.171-04:00Comments on Bilbo's Random Thought Collection: Generally Accepted Accounting PrinciplesBilbohttp://www.blogger.com/profile/14213505386288233192noreply@blogger.comBlogger9125tag:blogger.com,1999:blog-23683658.post-71088947970827236432008-12-30T05:37:00.000-05:002008-12-30T05:37:00.000-05:00I don't do accounting, I don't understand big bank...I don't do accounting, I don't understand big banking and I am shocked how they seemed to have dug this big whole and threw the world into it....and then left us to dig ourselves out.<BR/><BR/>But then after 40[mumble] years nothing really surprises me about how countries and economies are run....usually by a bunch of lying stealing cheating crooks!<BR/><BR/>So I'll stick to my little Crazie world, trying to make my salary cheque meet the next one!<BR/><BR/>cqcraziequeenhttps://www.blogger.com/profile/15098227916486173799noreply@blogger.comtag:blogger.com,1999:blog-23683658.post-26063938241898429612008-12-29T20:09:00.000-05:002008-12-29T20:09:00.000-05:00Accounting is complex because the workings of a co...Accounting is complex because the workings of a corporation is complex and the tax code is complex. My recollection of my accounting classes (which were a dozen years ago) was that the various accounts, and the rules that apply to them, when studied in some level of detail, are rationally contrived. <BR/><BR/>I realize that sounds flippant, but it isn't meant to be. It is just something that cannot really be justified in the abstract.Malaise Inchttps://www.blogger.com/profile/00507704570358674840noreply@blogger.comtag:blogger.com,1999:blog-23683658.post-76466660667874255842008-12-29T17:20:00.000-05:002008-12-29T17:20:00.000-05:00You were much to kind in your description of econo...You were much to kind in your description of economics.<BR/><BR/>@kktsews - "depreciation (that's a simple one)"<BR/><BR/>I worked for the phone company in cost accounting for awhile. Depreciation was the biggest fight the phone company had with the government. The phone company wanted short depreciation, the government wanted long. And what ever got decided for each item was a compromise that had no basis in fact.Mikehttps://www.blogger.com/profile/00017192454403363349noreply@blogger.comtag:blogger.com,1999:blog-23683658.post-17955821263143705022008-12-29T15:02:00.000-05:002008-12-29T15:02:00.000-05:00Math is way too complex here!Math is way too complex here!Jean-Luc Picardhttps://www.blogger.com/profile/01689798190618944262noreply@blogger.comtag:blogger.com,1999:blog-23683658.post-3455022975321308072008-12-29T12:05:00.000-05:002008-12-29T12:05:00.000-05:00Amanda - good to have you back! It really is inte...Amanda - good to have you back! It really is interesting to keep track of every cent you spend...I've done that before, and it's an eye-opening lesson in where the money goes.<BR/><BR/>Malaise - so why does the accounting need to be so complex, or to offer different sets of rules to implement that simple elementary school mathematics?<BR/><BR/>Andrea - stick with the music. You'll be happier and less likely to go to jail.<BR/><BR/>Katherine - I'm not so much blaming the accounting folks as the system that they have developed over time which, I beg to differ, is anything but simple. You're right in asserting that greed and a willingness to push the envelope of legality and prudence is what caused the economy to tank...but a lot of people we used to trust fell asleep at the switch, and now we have to clean up the mess.Bilbohttps://www.blogger.com/profile/14213505386288233192noreply@blogger.comtag:blogger.com,1999:blog-23683658.post-62342425345787869412008-12-29T07:40:00.000-05:002008-12-29T07:40:00.000-05:00Sorry, I have to disagree. You're appearing to bl...Sorry, I have to disagree. You're appearing to blame the major corporate and banking mess on the accounting folks, and I think that's misplaced. I didn't major in accounting, only taking 2 semesters, but I loved it because of the simplicity. The accounting principles come in to play, as I undertand it, when there are ambiguous situations. Such as...how do you account for depreciation (that's a simple one). You should not keep the full original value of hardware on the books after it's used, but just how quickly that is depreciated and what it's value can count against are issues that can be different in various businesses.<BR/>I think the mess in the economy comes down to corporate leadership and shareholders pushing the envelope in the name of greed. And yes, probably some accountants were eager or pushed to figure out ways to hide problems. But the fault is not with accounting, it's with the greed and our current tendency to want immediate results of unreasonable porportions.KKTSewshttps://www.blogger.com/profile/14300483956686864167noreply@blogger.comtag:blogger.com,1999:blog-23683658.post-24656154365183370412008-12-29T06:26:00.000-05:002008-12-29T06:26:00.000-05:00I almost majored in Accounting and those principal...I almost majored in Accounting and those principals still make no sense to me.The Mistress of the Darkhttps://www.blogger.com/profile/16923975714269274370noreply@blogger.comtag:blogger.com,1999:blog-23683658.post-2291461766594020152008-12-29T06:25:00.001-05:002008-12-29T06:25:00.001-05:00As an MBA, let me state that when you get right do...As an MBA, let me state that when you get right down to it, corporations live and die by the simple addition and subtraction that you are familiar with. Certainly, the accounting may be complex, but when all is said and done, their income has to exceed their outgo or they will eventually cease to exist. Enron and Bernie Madoff are examples of the eventual triumph of elementary school mathematics over complex accounting.Malaise Inchttps://www.blogger.com/profile/00507704570358674840noreply@blogger.comtag:blogger.com,1999:blog-23683658.post-81124441284235257012008-12-29T06:25:00.000-05:002008-12-29T06:25:00.000-05:00I don't use a checkbook but I did use an ordinary ...I don't use a checkbook but I did use an ordinary notepad to note down each and every one of my expenses each week during my time in Australia. Its the most effective way I know of to curb spending, especially when I'm usually short by some amount each week.<BR/><BR/>I scrolled down through your post and have to tell you that your tree was magnificent. My family does not have a 'tree tradition'.... best we've done is a tiny 2ft one I bought and decorated with origami foldings. And Leya has grown into such a pretty little girl!Amandahttps://www.blogger.com/profile/03542715899155247984noreply@blogger.com