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"accounting identity savings = investment"

That's not a GAAP. GAAP records spending. Spending amounts (values) are classified either asset or liability.

Balance sheet asset category, "investment activity," refers to both cash equivalent value of securities held for sale (of which guidance boards permit a variety of valuation methodologies including purchase price applicable to this asset type) and income, if any, from interest- and dividend-earning securities.

"savings = investment" is a finance supposition; it's not even a mathematical identity.

Diversity is the key to economic and political evolution.

by Cat on Wed Jun 9th, 2010 at 04:29:28 PM EST
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