Wednesday, November 12, 2008

Ingvar Kamprad - stickin' it to the man

Flat Pack Accounting (from The Economist)


IKEA - Corporate Structure. (from Wikipedia)

What happens to the boodle that IKEA makes?  We .. don't .. really .. know.  The parent for all IKEA companies is Ingka Holding.  Ingka Holding belongs lock stock and boodle to Stichting Ingka Foundation.  Which is a Dutch-registered tax-exempt non-profit legal entitity.  Which is worth just about $36 billion. 

And what do they do?  Their mission is to make the word of interior decorating a better place.

IKEA says only that this money is used for charitable purposes and “for investing long-term in order to build a reserve for securing the IKEA group, in case of any future capital requirements.” IKEA adds that in the past two years donations have been concentrated on the Lund Institute of Technology in Sweden. The Lund Institute says it has recently received SKr12.5m ($1.7m) a year from Stichting Ikea (which also gave the institute a lump sum of SKr55m in the late 1990s).

After that it gets complicated and it made my brains hurt just thinking about the skull sweat deployed by legions of accountants and lawyers to make it all happen.

What I know is it makes my Uncle Dub's [1] scheme to cheat The Man by taking cash jobs off the books at a discount look like the small change it was.

My hat .. is .. off to Mr. Kamprad. Stick it to the man, brother.

Also .. I gotta get me one of them non-profit foundations.

[1] Name and relationship changed to keep peace in the family.
blog comments powered by Disqus