|reply to ekster |
Re: RIM's pitch to developers
But you haven't really lost money, you spent that $2m and (assuming no amortization) expense it the first year.
It's simply goes against profit.
Amortization was 184m.
They spend over 360m on R&D
Putting the whole amount against profit in a single year would be considered lying because you did not use up all those 2 millions in a single year to make the first year's profit, even if you paid for it all in the first year.
You're expenses can only contain the expenses for the current year. And that's not just what accounts do, these are the tax laws. Long term assets aren't an expense for 1 year only, so they have to to be amortized.
And even if you remove amortization, you can still have a loss on the books, but gain money in the bank. There are also accounts receivable, accounts payable, etc. that can change things. And all these are part of the tax laws.
And that's also why we have cash flow statements. If you want to see the operating profit/deficit for the year, then you look at the statement of income, and if you want to see the company's cash, then look at the cash flow statement.
Edit: as for the real reason why it's done like this... it's because companies can lie and appear profitable when they aren't if you expense the whole thing in the first year. For example: someone takes out 10 billion, buys 8 billion of assets and pre-pays 2 billions for 90% of expenses in the first year for the next 20 years. He has a loss of 9.9 billion in the first year... but then the next 19 years will be incredible profits with almost 0 expenses. He then sells that company for 50+ billion with promises of infinite profits, when in reality, it was a loss all along.
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·Rogers Portable ..
|reply to Gone |
said by Gone:I think that would be a safe bet. Same folks that will buy the iPhone 5S when it comes out in June or whenever.
Though at least for Apple, my gut tells me that the vast majority of iPhone 5 sales are already iPhone users.
I am actually looking forward to the BB10, and I sure hope to hell that their camera can be as functional as the Nokia Lumina. (which is significantly better than the iPhone 5)
If they do a good release, they can be back in it.
If you can't explain it simply, you don't understand it well enough. - Albert Einstein
|reply to ekster |
ENRON, except they were booking future sales today and selling assets to arms length companies.
|reply to shaner |
The 920's camera is indeed impressive. I might not like the aesthetics of the device or OS, but the camera is top. I wonder what the relative sensor size is, I suspect that they gain their advantage from managing to fit a larger sensor in there (for low light performance, anyhow).
The optical image stabilization is also pretty neat, although imagine what they could have done had they mixed both optical and digital stabilization. I guess third-party software can do accelerational digital stabilization in post, though, by recording high-resolution accelerometer/gyro data while recording the video. It would have to be done on-phone, though, since once you're off the device all you can do is motion-tracking IS, which can be effective, but has great difficulty identifying legitimate camera movements.
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