Maybe they are, but that depends on how they define "losing money".
IMO, you "lose money" when your expenses exceeds your income. The business
world however seems to look at it differently. If a company makes $100
million in profits in year #1, and makes another $90 million in profits in
year #2, they do not claim they "earned 90 million in profits" in year #2,
but made a $10 million loss.
Jeroen
Umm, Jeroen, do you have any accounting background? While the actual
accounting of profit and loss can, in fact, become fairly complicated, the
situation that you have described doesn't correspond with any version of
accounting of which I am aware. Baseline budgeting, which is, I think,
what you are getting confused about, isn't used to calculate profit and
loss.
God Bless America,
Gautam Mukunda
Administrator
Fifth Annual "Jubilee" Russian Investment Symposium
Belfer Center for Science and International Affairs
John F. Kennedy School of Government
Harvard University
79 John F. Kennedy Street
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