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According to the Washington Post, some companies are adopting an innovative approach to accounting for the impact the coronavirus pandemic has had on their earnings: they’re leaving it out.

Questions:

  1.  What is Ebitda and why is it so important?
  2. How does Ebitdac work?
  3. Who’s using it?
  4. What is your opinion of this practice?

Source:

Lindell, K. (2020) How Companies Are Accounting for Covid-19. The Washington Post, July 15 (Retrievable online at https://www.washingtonpost.com/business/how-companies-are-accountingfor-covid-19/2020/07/10/d0f5aa86-c28b-11ea-8908-68a2b9eae9e0_story.html )

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