Don't Trust Earnings Reports
from the um.--duh. dept
In case you’ve been living in a hole and haven’t realized it, you shouldn’t trust what those tech companies say their earnings are. Thanks to some strange accounting rules, things like Yahoo’s profit of $71 million, is really a $1.2 billion loss (ouch). Most people know this already, but now Merrill Lynch has taken a closer look at the numbers to point out how far off some of the “earnings” reports really are. It has nothing to do with the companies, themselves, but the way the rules are written.