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Amazon.com Inc. Message Board

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  • geegenjar geegenjar Oct 28, 2005 2:19 PM Flag

    Introduction and a Question

    " Deferred Long Term Asset Charges

    These are expenses which the company has paid for but not yet subtracted from the assets.а They are very similar to Prepaid Expenses (where rent would be counted as an asset until it came due each month, then would be subtracted from the balance sheet).а In fact, Prepaid Expenses are type of deferred charge.а The difference is, when companies prepay rent or some other expense, they have a legal right to collect the service.а Deferred Long Term Asset Charges have no legal rights attached to them.

    For example, if a company prepaid rent on a storage building, and then spent $30,000 moving all of their equipment into it, they could set the $30,000 up on the balance sheet as a deferred charge.а This way, they wouldn't be forced to take a hit by reducing their earnings $30,000 the same month they paid for the relocation costs.а They could then write this amount down over time.

    These charges are intangible and should be given very little weight when analyzing a balance sheet."

    From: http://beginnersinvest.about.com/cs/investinglessons/l/blles3othasset.htm


    I hope this helps.

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    • ROTFLMAO.

      That's rich. Let's defer expenses until we have profits to offset them. Otherwise, our financial health will look worse than we want.

      • 2 Replies to antidisestablishmentary
      • Now the real question.

        Mr. Bozo (sp?) has signed off on a financial statement that looks misleading to me. If it looks misleading to the SEC then he can go to jail and lose the many millions that he already has reaped. (sp? raped?)

        I would not risk my sure 200M against only 2B or so. What does Bezos know that we don't know?

      • Hey, the MMs aren't playing fair. One of them keeps trying to prop it up with buys of 30K shares, and then another one immediately dumps into it. They all have to play together if they want to manipulate this. Otherwise, somebody will get itchy to get rid of all their shares and drop the price before all the bagholders, er, investors, get a chance to buy it at the higher prices.

    • Thank you geegenjar for your very nice answer.

      Now that I know what "Deferred Long Term Asset Charges" are, just what has AMZN spent 281M on?

      The write up says "These charges are intangible and should be given very little weight when analyzing a balance sheet."

      One more way to make this stock (Normally referred to here as POS)look like something other than a shell about to self destruct?

 
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