2 thoughts on “Floats and Moats copy (used for blog)_Page_20

  1. Dear Professor Bakshi,

    I dont understand if this deferred tax can be considered a float. This tax is on a profit which has not been realized yet. So I dont have the cash profit and I dont pay any tax on it but i have to just account for it. So isnt this a case of only ‘accounting entry float’ without actual ‘cash float’?

    Gaurav Bhatia

    • ram nene says:

      I think Unrealized profit act like asset say stocks which can be leveraged for any financial activity (like collateral for any debt)

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