a company's financial results are judged against what the shareholders want out of the business
If there is no desire to sell or raise money for investment or raise money on a stock market and cash flow is good, directors are paid well and shareholders are getting a bit of a dividend then why post a large profit - it just gets taxed
Better to show a small profit so shareholders can still get a divi but reduce tax liabilities
Eric
I'm not an accountant but I was of the opinion that the various accounting standards do not allow the directors to only post the profit that suits them rather than the true profit of the company.
Are you saying the amount of profit a company posts is at the discretion of the directors?
