Misleading the public
The B.C. government has announced what they call a “Balanced Budget.”
How stupid do they think we are? In order to achieve a zero bottom line they included the sale of assets as part of revenue. This is not merely misleading, it is in contempt of standard accounting principles which makes it abundantly clear that this practice is unacceptable.
Because we were told what they’d done I can’t label it as fraud. But they are trying to mislead, knowing full well that accounting is an arcane science to all but the initiated, not understood by the average citizen.
A profit-and-loss financial statement contains only operating revenues and expenses.
Assets are accounted for in the balance sheet alongside cash, thus a reduction in asset value means a corresponding reduction of net worth. Operating expenses may not write off an asset unless it no longer has any value.
The government knows this. It’s not rocket science. So it’s hardly surprising that The Vancouver Sun reported (Feb. 16) that only 33 per cent of Vancouver residents trust the current leader of the B.C. government.