资源描述：
《Purchase-Price Accounting Adjustments and the Cash Flow Fallacy》由会员上传分享，免费在线阅读，更多相关内容在学术论文-天天文库。
1、Purchase-PriceAccountingAdjustmentsandthe"CashFlow"Fallacy(Appendix-1986LetterfromWarrantBuffetttoBerkshireHathawayShareholders)Firstashortquiz:belowareabbreviated1986statementsofearningsfortwocompanies.Whichbusinessisthemorevaluable?CompnayOCompanyN(000sOmitted)Revenues$67
2、7,240$677,240CostsofGoodsSold:Historicalcosts,excludingdepreciation$341,170$341,170Specialnon-cashinventorycosts04,9791Depreciationofplantandequipment8,30113,3552CostsofGoodsSold349,471359,504GrossProfit$327,769$317,736Selling&Admin.Expense$260,286$260,286AmortizationofGood
3、will05953260,286260,881OperatingProfit$67,483$56,855OtherIncome,Net4,1354,135Pre-TaxIncome$71,618$60,990ApplicableIncomeTax:Historicaldeferredandcurrenttax$31,387$31,387Non-CashInter-periodAllocationAdjustment09984Taxes31,38732,385NetIncome$40,231$28,605(Numbers(1)through(4
4、)designateitemsdiscussedlaterinthissection.)Asyou'veprobablyguessed,CompaniesOandNarethesamebusiness-ScottFetzer.Inthe"O"(for"old")columnwehaveshownwhatthecompany's1986GAAPearningswouldhavebeenifwehadnotpurchasedit;inthe"N"(for"new")columnwehaveshownScottFetzer'sGAAPearning
5、sasactuallyreportedbyBerkshire.Itshouldbeemphasizedthatthetwocolumnsdepictidenticaleconomics-i.e.,thesamesales,wages,taxes,etc.Andboth"companies"generatethesameamountofcashforowners.Onlytheaccountingisdifferent.So,fellowphilosophers,whichcolumnpresentstruth?Uponwhichsetofnu
6、mbersshouldmanagersandinvestorsfocus?Beforewetacklethosequestions,let'slookatwhatproducesthedisparitybetweenOandN.Wewillsimplifyourdiscussioninsomerespects,butthesimplificationshouldnotproduceanyinaccuraciesinanalysisorconclusions.ThecontrastbetweenOandNcomesaboutbecausewep
7、aidanamountforScottFetzerthatwasdifferentfromitsstatednetworth.UnderGAAP,suchdifferences-suchpremiumsordiscounts-mustbeaccountedforby"purchase-priceadjustments."InScottFetzer'scase,wepaid$315millionfornetassetsthatwerecarriedonitsbooksat$172.4million.Sowepaidapremiumof$142.
8、6million.Thefirststepinaccountingforanypremiumpaidistoadjustthecarryingvalueofcurr
