Tesco - £5bn loss
Discussion
Defcon5 said:
How is that even possible?
BasicallyYou bought your house for £10bn. The surveyor has just valued it at £5bn. You've just lost £5bn
Cr Fixed Assets
Dr Reserves
My guess is that the CEO is writing everything down basically so that all the bad news can be blamed on the predecessor.
Countdown said:
Basically
You bought your house for £10bn. The surveyor has just valued it at £5bn. You've just lost £5bn
Cr Fixed Assets
Dr Reserves
My guess is that the CEO is writing everything down basically so that all the bad news can be blamed on the predecessor.
This. Get rid of all the bad news.You bought your house for £10bn. The surveyor has just valued it at £5bn. You've just lost £5bn
Cr Fixed Assets
Dr Reserves
My guess is that the CEO is writing everything down basically so that all the bad news can be blamed on the predecessor.
Most company books are based on "what would you like the answer to be?"
Countdown said:
Basically
You bought your house for £10bn. The surveyor has just valued it at £5bn. You've just lost £5bn
Cr Fixed Assets
Dr Reserves
My guess is that the CEO is writing everything down basically so that all the bad news can be blamed on the predecessor.
An accountants dream. & for those on new share optionsYou bought your house for £10bn. The surveyor has just valued it at £5bn. You've just lost £5bn
Cr Fixed Assets
Dr Reserves
My guess is that the CEO is writing everything down basically so that all the bad news can be blamed on the predecessor.
Countdown said:
Basically
You bought your house for £10bn. The surveyor has just valued it at £5bn. You've just lost £5bn
Cr Fixed Assets
Dr Reserves
My guess is that the CEO is writing everything down basically so that all the bad news can be blamed on the predecessor.
This. Exactly.You bought your house for £10bn. The surveyor has just valued it at £5bn. You've just lost £5bn
Cr Fixed Assets
Dr Reserves
My guess is that the CEO is writing everything down basically so that all the bad news can be blamed on the predecessor.
Who wouldn't ensure a nice clean desk before getting stuck in...?
Countdown said:
My guess is that the CEO is writing everything down basically so that all the bad news can be blamed on the predecessor.
Pretty much this.He will take the opportunity to reduce the standing to build it up in his own way going forward.
The uncertainty around supermarket leases has also pushed out yields on supermarket property (covenants not as strong as they were and little alternative use), tesco owns a substantial proportion of its real estate, through itself and their pension plan (plus other JV's with propco's). There is also a substantial pension deficit...
Remember these are all paper losses, not cash so as long as income remains sufficient to cover liabilities it's all good and it'll show better growth numbers medium term LfL
tumble dryer said:
Countdown said:
Basically
You bought your house for £10bn. The surveyor has just valued it at £5bn. You've just lost £5bn
Cr Fixed Assets
Dr Reserves
My guess is that the CEO is writing everything down basically so that all the bad news can be blamed on the predecessor.
This. Exactly.You bought your house for £10bn. The surveyor has just valued it at £5bn. You've just lost £5bn
Cr Fixed Assets
Dr Reserves
My guess is that the CEO is writing everything down basically so that all the bad news can be blamed on the predecessor.
Who wouldn't ensure a nice clean desk before getting stuck in...?
Vaud said:
Countdown said:
Basically
You bought your house for £10bn. The surveyor has just valued it at £5bn. You've just lost £5bn
Cr Fixed Assets
Dr Reserves
My guess is that the CEO is writing everything down basically so that all the bad news can be blamed on the predecessor.
This. Get rid of all the bad news.You bought your house for £10bn. The surveyor has just valued it at £5bn. You've just lost £5bn
Cr Fixed Assets
Dr Reserves
My guess is that the CEO is writing everything down basically so that all the bad news can be blamed on the predecessor.
Most company books are based on "what would you like the answer to be?"
In the finance/markets sector I believe the practice is called 'Kitchen-Sinking'.
Basically you throw everything bad including the kitchen sink into the bad news pile so you can get it all out of the way (and blame the last CEO) before attempting to move the company forward.
The thing is this land was purchased over a very long period of time and as today's prices are above the 2007 peak it raises questions as to were they inflated prices back then.. If so bonuses were paid out on those values.
Has the land been devalued too much?
Also chaps this means HMRC gets zero corporation tax this year and could be the case for years to come. Given they would normally pay a lot of tax half a billion maybe more that a massive impact to our public finances. Which department gets this now additional deficit.
Has the land been devalued too much?
Also chaps this means HMRC gets zero corporation tax this year and could be the case for years to come. Given they would normally pay a lot of tax half a billion maybe more that a massive impact to our public finances. Which department gets this now additional deficit.
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