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Old 03-18-2017, 04:40 AM   #4
RogerBW
 
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Join Date: Sep 2008
Location: near London, UK
Default Re: Technique of the Week: several for Accounting

Another, that used to be valid under the old German rules (pre-1995 or so), is provisions. In year 1 your company makes 3 million, but you write off 2 million of it as "provision for future losses"; in years 2 and 3 you take back that provision. The flash in the pan that's done no business since its first year now looks like a company with three years of stable profits.
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