News of Goldman Sachs’s good first quarter is all over the business press today, as it should be.

But the turn in its fortunes was due in no small part to an accounting quirk: The company switched its earnings calendar to a traditional quarterly schedule, leaving December an “orphan month”—one that just so happened to be very unprofitable.

Floyd Norris tipped his readers off to this on his New York Times blog today.

So I thought it would be interesting to analyze how the majors handled this little hiccup, as well as the broader Goldman earnings coverage. Turns out—not so well.

The Wall Street Journal fared worst of the four business outlets I looked at—at least on the “orphan” issue. The headline on its C1 earnings story is pretty rah rah:

Goldman Flexes Its Profit Muscle

And the loss-heavy “orphan month” of December? Relegated to one sentence, and it’s the dead last one—with zero explanation:

Goldman broke out the results from the stub December period separately, reporting a loss of $780 million, or $2.15 cents a share.

Bloomberg was no better. Here’s its story’s December reporting:

The bank also said yesterday that it lost $780 million, or $2.15 a share, in the month of December, before the start of its new fiscal year.

The Times’s story was just a bit better than those two, giving the matter a whole paragraph!

While Goldman reported a strong first quarter, it also reported a loss of $1 billion in the month of December, underscoring how quickly its fortunes can change. That month was reported on its own because Goldman is changing the timing of its fiscal year by a month, to match the calendar year. The loss was in part related to write-downs on high-yield bonds, as well as deterioration in real estate.

At least it has an explanation for why the company, which is an Audit funder, did such a thing.

Finally, the Financial Times only gives a paragraph, too, but it explained why the “orphan month” happened and explicitly signals to the reader that this, coincidentally or not, helped boost Goldman’s first quarter:

Goldman benefited from a quirk in its reporting schedule. Its fourth quarter ended in November 2008, but after converting to a bank holding company last year, Goldman adopted a calendar-year earnings period starting in 2009. As a result, the company did not have to include December in its first quarter earnings, a month in which it sustained $1.3bn in pre-tax losses.

So why should we care about one lousy month when the last three were so great? Well, it’s pretty simple: The quirk in accounting allowed Goldman to frontload more of its writedowns into that month, betting correctly that it would be overlooked for the headline of a smashing first-quarter profit—which is big news these days, you know.

Norris put this very well this morning:

Goldman Sachs reported a profit of $1.8 billion in the first quarter, and plans to sell $5 billion in stock and get out of the government’s clutches, if it can.

How did it do that? One way was to hide a lot of losses in not-so-plain sight…

The orphan month featured — surprise — lots of write-offs. The pretax loss was $1.3 billion, and the after-tax loss was $780 million.

Norris live-blogged Goldman’s conference call this morning and reports this intriguing sidelight:

Guy Moszkowski of Merrill Lynch wants to know if they made money from the now-famous government-financed American International Group transactions.

The answer is cautious. Most of the impact was in December. For the first quarter, the total A.I.G. effect on earnings was, in round numbers, zero.

Also, compensation rose at Goldman in the first quarter compared to a year ago as revenue and profits increased. That’s even though the company had many fewer workers than it did then.

Ryan Chittum is a former Wall Street Journal reporter, and deputy editor of The Audit, CJR's business section. If you see notable business journalism, give him a heads-up at rc2538@columbia.edu.