Since earnings are reported higher, then the P/E multiple comes out to be lower. This also makes the company more attractive because it seems undervalued.Accounting consists of a complex set of rules and guidelines that do an exceptional job of fairly representing the vast majority of corporations in the marketplace. However, there are some types of companies that are hurt by traditional accounting methods due to the unique nature of their business. It is fair to make an exception for these companies sometimes because of the broad purpose of accounting. This is to deliver timely, and accurate information to investors so that they may make informed decisions about how to allocate resources....
