How to Read Financial Statements (page 2)

Defianttruth

Jefft A question your expertise may be able to answer. Everyone seems to look at the property assets the WBTS has in its possession as equitable properties. A person who claims to work at a bank the WTBS banks with list their D&B credit as good. With their cash flow and If the properties were containing equity wouldn't it be easy to receive a loan based off of these two factors. Is it telling that they are more willing to limit growth and operations while having cash flow and good credit. My point is the NYC properties are some the hottest properties in the world. If they needed liquid capital, wouldn't any bank in the world be willing to loan them money if the properties had equity?

Oubliette

Jeff, I appreciated your review of Generally Accepted Accounting Practices (GAAP). Although I am now an educator, my first degree is in business. I worked for many years in the financial sector, primarily with real estate investments.

One of the things that always irked me when I was still in this cult was the fact that, although every congregation publicly reviewed their accounts report every single month, the organization never discloses any of its financial matters.

This lack of transparency was and remains disturbing to me. How can we know what they're doing with the funds we donated when they never reveal the details of their finances. There is no independent accounting. Frankly, none among the seven morons (apparently) running this religion appears to have the business acumen or financial background to be at the reins of such a large entity. And it is clear there's no "Jehovah" watching the books. - Hebrews 4:13

I have long suspected that there must be a cadre of legal and financial advisors actually running the ship, but if they are "true-believers," then they are doing so while acquiescing to the "leadership role" of the seven.

Can you imagine what it must be like for someone with actual business sense to try and give financial advice to Stephen Lett? What a nightmare that must be!

At any rate, I appreciate your attempts to shed light on what is deliberately a very dark place: the accounting and business practices of the cult known as Jehovah's Witnesses, aka The Watchtower Bible and Tract Society and its numerous subsidiaries, divisions and shell corporations.

Oubliette

Saintbertholdt

For there is nothing hidden that will not be disclosed, and nothing concealed that will not be known or brought out into the open. - The medical accountant Luke

OrphanCrow

Oubilette: Can you imagine what it must be like for someone with actual business sense to try and give financial advice to Stephen Lett? What a nightmare that must be!

Either that, or it could be a total cake walk.

Just imagine how simple you could make it sound..."Just put this dollar in this piggybank, and later, much later, you might get a dollar and ten cents back. The money will come from an overlapping piggy bank...down in paradise island."

Along with..."Just trust me. I am an accountant. And the lawyers said it is a good deal."

Oubliette

OrphanCrow, you made me almost spit my coffee all over my laptop in laughter.

You're probably right!

carla

Thanks Jeff.

OrphanCrow

Sorry about that, Oubilette. It is Sunday morning wake and bake time here and my funny bone is happy. But, I feel bad you spilled your coffee and I will buy you a Timmy's if you ever make it up to Canada.

JeffT, I have a question for you, our resident financial guru. This has been in the back of my mind for a while and I can't seem to find the information on it.

It concerns the international transfer of funds. Can someone take advantage of fluctuating exchange rates and make a profit by simply moving money around between countries?

There is an awful lot of money that flows into the New York coffers from other countries and, some of that money flows back into the other countries. It seems, though, that always the larger amount goes to New York.

Oubliette

OC, no worries. Note the use of "almost" in my preceding post!

If I ever make it north of the line I'll take you up on that offer.

JeffT

Defianttruth, what you've said is the heart of the problem with being "real estate rich and cash poor." Equity is one half of the issue, the banks also want to know how you're going to pay them back. Equity is useful to them only if they have to take the building back when you can't pay the mortgage. In a commercial or multi-family deal the bank looks at the building's income stream from rents. In the case of WTBS properties there are no rents, and banks regard donations as unreliable. I'm under the impression the Watchtower has sold most of its NY properties, if there is some left, selling it is the only real hope of getting cash.

Orphancrow, in a word. YES. I recall Ray Franz mentioning this in one of his books, I can't find the reference just now. There's nothing wrong with it, and in an empire as big as the Watchtower's it's easier to find a way to move money around at places and times that yield financial advantages. Again, due to lack of transparency, we have no idea how much the WTBS makes doing this.

OrphanCrow

Thank you, Jeff. I guess that is one of the advantages of being an international organization when just moving money around between countries can result in a profit. Nice gig.

How to Read Financial Statements

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