This is a silly article. Since MSFT took a ~49% stake in OpenAI, it records its share of OpenAI's net losses in the other income line under the equity method of accounting. MSFT is offsetting its taxable income based on a prior investment
This is a silly article. Since MSFT took a ~49% stake in OpenAI, it records its share of OpenAI's net losses in the other income line under the equity method of accounting. MSFT is offsetting its taxable income based on a prior investment
The complaint is not that MSFT is reporting the loss. It's that, in terms of both the % of OpenAI and the dollar value of the stake, it's large enough that there should also be a related party disclosure.
IANAA so I don't know how true that is. Just wanting to point out that I don't think you're responding to the key point of the article.
Can you elaborate on this a bit more? Does that mean OpenAI had a ~$9.4 billion loss so MSFT needs to put 49% of that loss in their books?
Yes
I always chuckle when tech writers take a stab at financial statements
Heard on the Street is the financial side of the WSJ.
Moreover, the author of this article is the reporter who first reported on Enron's sketchy accounting: https://en.wikipedia.org/wiki/Jonathan_Weil
This is a funny sentence bc I consider the WSJ to be a financial news source in general
It's from the financial side of a financially focused paper.
Anything else you can add to the conversation?