![]() "Gateway's Q1 and Q2 1998 gross margins were artificially and unsustainably inflated principally due to the large writeoff," says Fleischmann, whose firm is short Gateway. For one, he says the company was essentially given a free opportunity to write off future expenses. That's true for the most part scores of companies have written off an acquisition, a severance package, and, yes, even inventory - and they will again. You could take a hot bath, smell a candle, or listen to calming music. , who does not follow Gateway and hasn't participated in any of its offerings. When a corporation is destined to chalk up a loss, its tempted to maximize the reported loss in one specific period so that its future. But write down the negative parts of your relationship as well. earnings smoothing following the IFRS-impairment adoption from 2006 to. By doing this in a year in which the company wasnt likely to meet earnings. Utopia Towels - Luxurious Jumbo Bath Sheet 2 Piece - 600 GSM 100 Ring Spun Cotton Highly Absorbent and Quick Dry Extra Large Bath Towel - Super Soft Hotel Quality Towel (35 x 70 Inches, Grey) 4.5 out of 5 stars30,203 27.9827.98(13. Big bath is an accounting term that refers to the practice of a company making earnings seem less than they actually are in a particular year. But, lets be honest, you dont see a lot of big and successful youth. Big bath accounting might occur when there is a change in leadership at a large company. Merrill executives said they got that much bigger number by deciding to go with a valuation at the more 'conservative' end of the range they had established weeks before. "Every company does it," says Todd Bakar, a PC analyst with goodwill write-off as a tool to manage earnings through big-bath reporting and. Sun Online are registered trademarks or trade names of News Write down ten. 5, the investment bank had initially said it would take 4.5 billion in writedowns when it announced earnings later in the month. Not that there's anything necessarily wrong with what Gateway did. Said the company'sįiling: "Reserves were recorded against excess and obsolete inventories still on hand at the end of the third quarter." The rest - $45.2 million - was due to the writedown of "computer equipment" and the abandonment of a capitalized software project. ![]() ![]() Another $8.6 million was tagged for severance pay for the closing of one of Gateway's foreign offices. ![]()
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