A business firm by a Filipino billionaire this post believes, used financial accounting magic (ledgermain) to post up his business to have earned P1trillion in profits. While this may be legal and in accordance with GAAP, comparison with other companies can not be held acceptable: all ready comparing apples and oranges. Sales revenues as against asset revaluation. And the business owner has to pay taxes on unrealized gain.
The question is: can you sell the properties at the published prices in the asset revaluation: P200,000 memorial park plots anywehre in the Philippines.. X amount (hundreds of thousand pesos/sm at Villar city
What did the billionaire gain by revaluation? Holding himself in high esteem in the business community? Did he creeate wealth for others? Did he create jobs? Did he improve the econnomy?
Maybe we could do the same to our inventories and declare ourselves billionaires. ?
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