Originally Posted by
Coto Pilot
Global you haven't been in the industrty very long if you honestly believe companies, including or especially airlines don't manipulate accounting practices to reflect what they want. There is nothing illegal with most of it, accelerating expenses in one year, writing down assets etc make it very easy to claim poverty while business is booming. Just look at the press reporting today regarding earnings reports, some spin United's $500+ million profit as great news and others make it sound disappointing.
Oh, I believe airlines can do exactly what you are describing. A business, for example, could accelerate depreciation of certain assets, which may make bottom line numbers look better for that reporting period. However, if you accelerate it now you lose that depreciation later- it catches up with you eventually.
What I don't believe, however, is that an airline can "hide" assets like cash, real property, etc. If they were and it wasn't accounted for, that would be illegal. That was the implication that All Nighter was making I believe, and I disagree with that.