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Simcountry is an Online Digital World where you are the President of a country.
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Enterprise Cash Flow & Corporation Data (White Giant)

Simcountry: Simcountry Bulletin Board  Enterprise Cash Flow & Corporation Data (White Giant)

Khusru Anushirvan (Kebir Blue)

Tuesday, December 14, 2004 - 05:30 pm Click here to edit this post
The current setup looks like a real financial statement, which is nice, but in real life firms can merge and take those transfers off-book.

I think Rain Storm is right that firm owners want to run their enterprises as if they were a single corporation, so to them transfer payments just muddle the accounting.

What about people who want to buy a firm? I suspect they want to know how profitable the firm would be for them. That means transfer payments obscure the firm's real profitability, and should be called out separately to promote an active takeovers market.

On that theme, it would be even nicer for takeover artists if the financial page showed how much money is being made (or lost) from contract vs. market pricing.

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