LEASE LIABILITIES EXIST, SO TOO DOES EMPLOYEE COMPENSATION IN ALL ITS FORMS

Be sure to include both when analyzing businesses and don’t rely on screeners and third party aggregated data that makes none of the requisite adjustments.

This is an excellent article (slowcompounding.substac…) by Alexander (Slow Compounding substack) that breaks down the inadequacies of financial accounting for investors with a focus on the changes introduced by IFRS16 in relation to leases.

To better understand how to adjust properly for employee compensation paid in forms other than cash, I covered the topic in detail in this podcast: rockandturner.substack.…