Wednesday, January 31, 2007

WORTH:We Have None of Our Own!

GOD'S GOOD WILL: [Romans 3:19-26]
AOL/Time Warner Inc., the largest media company in the world in 2002, reported a net loss of $54 billion for the first quarter. This is the largest quarterly loss ever by a U.S. company.

How can a company post a $54,000,000,000.00 loss in three months? It involves a formerly but “generally accepted” accounting convention called "goodwill."

Goodwill is the estimated intangible book value of a company above the value of its tangible assets. For those ungifted in financial alchemy, this means the value given to something that doesn’t exist.

In the past goodwill was thought to be the estimated worth of the good and valuable relationship of a business proprietor with his customers. The concept was broader in recent years in that it also encompassed many more intangible factors of the business enterprise.

Formerly, one business would buy another and what one group of investors considered return-on-investment the other considered a goodwill asset. The new owner would then capitalize that amount and write it off a little at a time over a number of years. In other words, they reduced their tax burden over time.

Presently, and especially since Enron, that is not the case. Insubstantial goodwill value must now be declared almost immediately. Huge losses, such as AOL’s, will probably be commonplace, at least until the dust settles.

AOL’s loss may be the largest loss recorded in the books of man but there was a loss infinitely greater, the loss of our innocence in the Garden of Eden [Genesis 3:11].

The Bible says we were formerly written out of the Book of Life, lost in our sins; but, now, on the basis of the blood of His Son, God has redeemed us, a people of no value, and reckoned us valuable.

However, unlike the world’s accounting system, God’s goodwill remains and man’s tangible assets are written off. The Bible says, "BLESSED IS THE MAN WHOSE SIN THE LORD WILL NOT TAKE INTO ACCOUNT." [Romans 4:8, cf. Psalm 32:2]

Jesus said, “Do not fear; you are of more value than many sparrows.” [Luke 12:7] He said, "Of how much more value then is a man than a sheep!" [Matthew 12:12]

Jesus also warned those who loved the things of this world ...
"You fool! This very night your soul [could be] required of you; and now who will own what you have prepared? So is the man who lays up treasure for himself, and is not rich toward God."

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