RE:Acquisition Accounting ..... Love it! Lattice wrote: fdfd, Do you think that the fact that the adjusted eps is hundreds and hundreds of times greater than the actual eps is a concern to shareholders? Gee really? Acquisition accounting is nothing more than financial engineering.
I calculate Adjusted-EPS for every stock I analyze. EPS has non-cash items, one-time items, and extraordinary items that are not necessarily reflective of the company's ongoing operational performance. I consider "E" to be meaningless on its own, because it is so easy to manipulate with non-cash items.
However, I do not simply accept Adjusted-EPS as reported, because it too can be manipulated. I check how the company has assembled Adjusted-EPS, and if I am satisfied I accept it. If not, I do further adjustments to bring it into line with my analytical requirements.
And finally ... this to you @Lattice ... I would not imply that a financial figure has been engineered (colloquial meaning = 'designed to be intentionally misleading') unless I could point to specific and compelling evidence in the AFS/IFS or MD&A. If you've got it, bring it.
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