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

You are correct on all accounts Mav .... it all depends on the certainty of the reserve if it is deductible for tax purposes in the year taken. GAAP requires estimate of "potential" loses to also be recorded to fairly present the financial position of a company (as you pointed out) like bad debts and reserve to shut down a operation or liability for severence if a big layoff is planned. But the certainty of the loss for the Gulf fund is very clear and will be most likely higher. I am sure BP for book purposes will come up with an even higher number, but what they can deduct is what is determined to be certain and/or probable.

Big corporations (I worked for one for a while) always take more risk with tax deductions ... and large corps like BP are audited every year and normally have IRS agents officed right in the tax dept. The IRS and the company knows that with every audit it is a negotiation .... ie: ok you can disallow this, but you will let this go. It saves everyone time and engergy. Only the biggest get challenge and settled in tax court.

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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