Ann: Monthly Activities/Appendix 4C Cash Flow Report, page-40

@nottawombat

Of course the profit and loss is important in the valuation of companies as it is one of the main ways that people value companies.

I already knew you wanted to run away because you can't make the argument (I can see you put me on ignore well before your most recent post and still have me on ignore but I also know that you can see this).

You can see the problem with the accounting rules around options and why companies use them instead of cash if you imagine the case of where instead of issuing shares, the company paid management cash that management then used to buy the same number of shares, rather than issuing them.

In that case, the accounts would show an expense of $8 M, but if the company gives them the same $8 M in shares rather than cash the full $8 M does not show as an expense and effectively inflates the profit, so there is a rather big inconsistency there and makes the company look profitable when it really isn't, because it has not included the value of the options that it has issued - but they are a real cost to shareholders.

You can claim that this idea is fanciful, but investors have been complaining about it for years.