In Reply to: Re: IBM Vapour Profits from Pensions posted by Brian Marks on 08 April 2004 at 18:56:57:
: Well, I don't claim to understand IBM's accounts (professional accountants have called them obscure), but presumably the vapour profits are influenced by the IBM US pension fund (a lot bigger than the IBM UK funds) not being in deficit. IBM Corp stuck cash and IBM shares into it to make it actuarially not in deficit. Link below is to a Wall Street Journal that says something about why.
The interesting thing is that by contributing to the Pension fund IBM was actually able to INCREASE its reported profits. Another US Accounting quirk!!