Post by
Bananahanger on Feb 28, 2022 2:44pm
Financials
I would like to buy some joy but one thing I don't understand concerns me. Could someone who knows more than I do about accounting please explain: they are reporting an 85 million increase in recovery of previously impaired assets. What is this and why are they calling it income? Is it an increase in the book value of assets and if so why is it income rather than assets on the balance sheet? Seems weird to me. Keeping me from taking this company seriously.doesn't look like income to me. Sorry to bother me with my lack of knowledge. Somebody please explain and I would appreciate it.
Comment by
Bananahanger on Feb 28, 2022 4:04pm
Thank you for the explanation. That makes sense and I'm glad it's an accounting requirement rather than the choice of the company to inflate its income. However it's a deal breaker for me in deciding whether to stay with gear or put some money in joy. I will probably regret it within the year.
Comment by
pennydredful on Feb 28, 2022 4:49pm
same rules apply to all oil and gas companies.