Suppose you are a reporter writing about an unusual accident where a shipping container full of canned tomatoes fell off a ship. Would you quote the value lost as the loss the farmer sold it for, the price the cannery sold it for, the price the importer sold it for, the price the distributor sold it for, or the price the grocery store sold it for? Every news outlet in the world is going to quote the grocery store price, #1 because it's a bigger number and that sounds more impressive, #2 because it's the only price any of their readers can relate to, #3 because depending on the exact structure of the supply chain every single price except for the grocery store price can fluctuate wildly, #4 because that's the way it's always been and you'll confuse your readers if you do anything different.
Suppose you are a reporter writing about a drug seizure. Would you quote the total street price of the drugs, or --- how could you possibly be that familiar with the supply chain to quote any other price? If the transaction between the party doing transport and the party doing distribution has already taken place, the "real value" of the product has changed dramatically despite the fact that the container with the drugs is still the same thing in the same place. How can you tell what the "real value" is if you, the reporter, don't know whether or not it has been transacted?
Even in the case of a supply chain where intermediate prices are defined in written contracts enforceable by law, it would be silly for a reporter to try to dig into what the "actual price" (finger quotes) of the product is instead of just using the street value.
> And, conversely, if you were uninsured, what loss do you book in your accounting? The first loss, not the second.
That's a tax writeoff. Accountants who book the first loss get fired and replaced by accountants who book the second.
> Suppose you are a reporter writing about an unusual accident where a shipping container full of canned tomatoes fell off a ship. Would you quote the value lost as
You'd look for an answer in a press release. If there is no press release, you'd ask the question at a press conference or interview, and then you'd cite the figure you were told without caring about how it was actually calculated. You'd likely only question the value if it sounded obviously wrong.
> Suppose you are a reporter writing about a drug seizure. Would you quote the total street price of the drugs, or --- how could you possibly be that familiar with the supply chain to quote any other price?
Does your average reporter actually know what the average street price of various illegal drugs currently is? Especially given the price varies from drug to drug, time to time, and place to place. I think usually reporters just quote the street value given in the law enforcement press release or news conference, rather than attempting to work out a figure for themselves.
> That's a tax writeoff. Accountants who book the first loss get fired and replaced by accountants who book the second.
Suppose you are a reporter writing about a drug seizure. Would you quote the total street price of the drugs, or --- how could you possibly be that familiar with the supply chain to quote any other price? If the transaction between the party doing transport and the party doing distribution has already taken place, the "real value" of the product has changed dramatically despite the fact that the container with the drugs is still the same thing in the same place. How can you tell what the "real value" is if you, the reporter, don't know whether or not it has been transacted?
Even in the case of a supply chain where intermediate prices are defined in written contracts enforceable by law, it would be silly for a reporter to try to dig into what the "actual price" (finger quotes) of the product is instead of just using the street value.
> And, conversely, if you were uninsured, what loss do you book in your accounting? The first loss, not the second.
That's a tax writeoff. Accountants who book the first loss get fired and replaced by accountants who book the second.