Off-Topic: Did Obama stick it to BP?

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	Name:	MartiniMan -
	Subject:	Did Obama stick it to BP?
	Date:	8/14/2010 9:00:07 AM

I know I am late to this debate and I think it has been answered already but I know for certain that our multi-national clients take an income statement hit when they book environmental reserves. And that is long before they pay it out. All these firms are c-corporations which are all taxed on an accrual basis. What was stated previously would be true if they were taxed on a cash basis but c-corp's are not allowed to do so. Therefore they pay taxes and take deductions before they either receive the actual cash revenue or remit cash for expenses.

What is also a nice feature for us in the environmental business is let's say the reasonably estimable remediation cost for a project is $15M and we achieve closure for $10M our client gets to book $5M in revenue that tax year. Yes they pay taxes on the revenue but that is really just repaying the prior deduction they took when they booked the reserve. More importantly it is always good for my clients who are usually just a drain on the bottom line to actually add to profits. My biggest success was turning a $25M reserve into a $3.5M project. The general counsel for this company would shake my hand every time I saw them and they sent the entire team to Montana for a fly fishing and horseback riding trip.

Other messages in this thread:

View Entire Thread

Did Obama stick it to BP? - water_watcher - 8/12/2010 7:14:15 PM

Did Obama stick it to BP? - GoneFishin - 8/12/2010 8:54:46 PM

Did Obama stick it to BP? - water_watcher - 8/12/2010 10:12:29 PM

Did Obama stick it to BP? - water_watcher - 8/12/2010 10:18:32 PM

Did Obama stick it to BP? - lotowner - 8/13/2010 8:33:50 AM

Schedule M - Maverick - 8/13/2010 1:46:38 PM

Hey MAVERICK - GoneFishin - 8/13/2010 5:30:40 PM

Hey MAVERICK - Maverick - 8/13/2010 6:27:35 PM

Hey MAVERICK - water_watcher - 8/13/2010 9:23:07 PM

Did Obama stick it to BP? - MartiniMan - 8/14/2010 9:00:07 AM

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