What ever happened to Union being able to look at books?
I am not an accountant but do have enough understanding as to how companies move assets within the holding company umbrella.
For instance YRC has some old trailers that need to be sold, they refurbish them at a cost to themselves. Now that cost shows as maintenance expense. Trailer has been depreciated out and has no value if sold it becomes profit (on paper). Now trailer is sold to Holland for $15,000, this reduces Holland’s bottom line(profits), and at same time pulls up YRC profits and gives them an influx of operating cash.Not to mention fees for management and accountability that are used to move money around.
When ever there is a holding company YRCW involved it makes it very complicated to track what is going on.
Just my 2 cents on our situation, a shell game of money.
I am not an accountant but do have enough understanding as to how companies move assets within the holding company umbrella.
For instance YRC has some old trailers that need to be sold, they refurbish them at a cost to themselves. Now that cost shows as maintenance expense. Trailer has been depreciated out and has no value if sold it becomes profit (on paper). Now trailer is sold to Holland for $15,000, this reduces Holland’s bottom line(profits), and at same time pulls up YRC profits and gives them an influx of operating cash.Not to mention fees for management and accountability that are used to move money around.
When ever there is a holding company YRCW involved it makes it very complicated to track what is going on.
Just my 2 cents on our situation, a shell game of money.
