Esprit Posted August 19, 2020 #326 Share Posted August 19, 2020 1 hour ago, bouhunter said: There is so much wrong with that I don't know where to start. Please enlighten me. Are you a CPA or member of another world recognized accountancy body like the ICAEW we have here? Link to comment Share on other sites More sharing options...
drsel Posted August 19, 2020 #327 Share Posted August 19, 2020 Don't worry the first MSc grandiosa cruise ship just left Genoa.Cruises start sooner or later. Link to comment Share on other sites More sharing options...
Baron Barracuda Posted August 19, 2020 #328 Share Posted August 19, 2020 4 hours ago, Esprit said: Which is why company Balance Sheets have to show "Deferred taxation" provisions RCL doesn't pay income taxes (at least not in US) so you won't find any deferred taxes on their balance sheet. Link to comment Share on other sites More sharing options...
Baron Barracuda Posted August 19, 2020 #329 Share Posted August 19, 2020 (edited) 4 hours ago, MakingUpForLostTime said: So, with 4.684B in current assets to cover 4.736 in current liabilities they are insolvent. With 1.805B in customer deposits that mostly will not be paid back and turned into revenue once sailing have started, they could be seen as solvent. For each month delay, over 250M cash will be burned and most likely more deposits will have to be refunded (as customers realize the risk of losing the deposit becomes greater), the threshold to insolvency lowers. The only saving grace is new debt. This will dry up and become more expensive hindering any future recovery. I wonder when all these points intersect? A good point was made regarding the value of assets. I would think that all ships have scrap value if there are no buyers and they cost money to store. Like owning an elephant if there are no paying customers to see that elephant. Still has to be feed and someone to clean up its poop. Many companies take advantage of a positively sloped yield curve to fund themselves primarily with short term debt causing current liabilities to exceed current assets. As of 12/31/19 Exxon had $50B in current assets vs $63B in current liabilities. Walmart had $62B in current assets vs $77B in current liabilities. Are they insolvent? It's a non-issue. Edited August 19, 2020 by Baron Barracuda Link to comment Share on other sites More sharing options...
Rare John&LaLa Posted August 19, 2020 #330 Share Posted August 19, 2020 Wow, one thread today is quoting scripture, and this one is an Accounting lesson. Interesting what we discuss with no cruises on the Horizon😉 3 3 Link to comment Share on other sites More sharing options...
Esprit Posted August 19, 2020 #331 Share Posted August 19, 2020 39 minutes ago, Baron Barracuda said: RCL doesn't pay income taxes (at least not in US) so you won't find any deferred taxes on their balance sheet. I can’t comment about RCL, but in the Carnival Corp’ financial statements for the year ended 30 November 2019 within their accounting policies is a note on page 73 confirming their deferred income tax policy. 1 Link to comment Share on other sites More sharing options...
bouhunter Posted August 19, 2020 #332 Share Posted August 19, 2020 24 minutes ago, John&LaLa said: Interesting what we discuss with no cruises on the Horizon😉 It sure is. Link to comment Share on other sites More sharing options...
drsel Posted August 19, 2020 #333 Share Posted August 19, 2020 Wow, one thread today is quoting scripture, and this one is an Accounting lesson. Interesting what we discuss with no cruises on the Horizon[emoji6]What was the scripture quoted, with what reference to context and on which thread? Link to comment Share on other sites More sharing options...
Rare John&LaLa Posted August 19, 2020 #334 Share Posted August 19, 2020 (edited) 8 minutes ago, drsel said: What was the scripture quoted, with what reference to context and on which thread? Posts 76 and 82 Something do do with loyalty Edited August 19, 2020 by John&LaLa Link to comment Share on other sites More sharing options...
drsel Posted August 19, 2020 #335 Share Posted August 19, 2020 Posts 76 and 82 Something do do with loyalty Thanks, it is about a poor lady offering all that she had to God Link to comment Share on other sites More sharing options...
Rare John&LaLa Posted August 19, 2020 #336 Share Posted August 19, 2020 11 minutes ago, drsel said: 26 minutes ago, John&LaLa said: Posts 76 and 82 Something do do with loyalty Thanks, it is about a poor lady offering all that she had to God Correct, but the context was loyalty measured by dollars or by nights. The crux was someone could be blindly loyal but didn't have the means to afford suites Link to comment Share on other sites More sharing options...
yogimax Posted August 19, 2020 #337 Share Posted August 19, 2020 Just now, John&LaLa said: Correct, but the context was loyalty measured by dollars or by nights. The crux was someone could be blindly loyal but didn't have the means to afford suites That's a pretty close interpretation. 1 Link to comment Share on other sites More sharing options...
jakeT Posted August 19, 2020 #338 Share Posted August 19, 2020 Even though Carnival and all the big three have offices in the US. And have to pay property tax sales tax ect. The Corp is a foreign Corp. so not paying corporate income tax the big one Link to comment Share on other sites More sharing options...
Baron Barracuda Posted August 19, 2020 #339 Share Posted August 19, 2020 4 hours ago, Esprit said: I can’t comment about RCL, but in the Carnival Corp’ financial statements for the year ended 30 November 2019 within their accounting policies is a note on page 73 confirming their deferred income tax policy. Have too much free time lately so scanned the CCL 2019 annual report and 10k. Neither has a page 73. Didn't see a mention on deferred taxes. Annual report had a discussion in footnote 8 on income taxes which basically says they consider their international operations exempt from US income tax. They are however liable for income taxes on their US shore operations, mainly Alaska hotels & land tours. They pay some taxes to other countries such as UK and Australia however their total income tax expense for 2019 was only $70MM, resulting in an effective rate of 2.3%. Link to comment Share on other sites More sharing options...
Esprit Posted August 20, 2020 #340 Share Posted August 20, 2020 9 hours ago, Baron Barracuda said: Have too much free time lately so scanned the CCL 2019 annual report and 10k. Neither has a page 73. Didn't see a mention on deferred taxes. Annual report had a discussion in footnote 8 on income taxes which basically says they consider their international operations exempt from US income tax. They are however liable for income taxes on their US shore operations, mainly Alaska hotels & land tours. They pay some taxes to other countries such as UK and Australia however their total income tax expense for 2019 was only $70MM, resulting in an effective rate of 2.3%. Sorry Barracuda Just realised I was looking through the Carnival financial statements for the PLC and not Corporation. But as PLC and Corp' are dual listed in the USA and UK they must both apply the same IFRS accounting standards. The deferred tax provisions are was alluding to relate to accelerated capital allowances and therefore the timing difference that occurs when fixed assets are depreciated over their economic useful lives, but qualify for full tax relief when acquired. Link to comment Share on other sites More sharing options...
zonacruiser25 Posted August 20, 2020 #341 Share Posted August 20, 2020 Lot's of "other" shoes will drop before our beloved cruises come back. Every line will likely be leaner and meaner and hopefully strong enough to build back to a good schedule. We are sitting on the sidelines and placing bets on the COME line. Looking for a win! I hope MSC is successful Link to comment Share on other sites More sharing options...
Charles4515 Posted August 20, 2020 #342 Share Posted August 20, 2020 https://thepointsguy.com/news/crystal-cruises-parent-company-financial-trouble/Sent from my iPhone using Tapatalk Pro Link to comment Share on other sites More sharing options...
yogimax Posted August 20, 2020 #343 Share Posted August 20, 2020 Cruise stocks up on news of some shorter cruises starting in Europe. The question is what will happen when the first cases of COVID are discovered. 1 Link to comment Share on other sites More sharing options...
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