The financial numbers game detecting creative accounting practices phần 5 pptx

... receive on the loans above the amounts funded on the loans over (2) the present value of the interest they had agreed to pay the buyers of the loan-backed securities. When properly executed, there ... made in the chapter, based on the survey, include the fol- lowing: • Financial professionals are generally in agreement on when earnings management crosses the line betwe...

Ngày tải lên: 14/08/2014, 12:21

... those who seek to play this financial numbers game. The Financial Numbers Game: Detecting Creative Accounting Practices was written, first and foremost, to help readers of financial statements avoid ... plunged 40% 15 • Given the various creative accounting practices that can be used to play the financial numbers game, a classification scheme was devised...

Ngày tải lên: 14/08/2014, 12:21

... up after the financial numbers game. As seen in the exhibit, the appropriate adjustment depends on whether a change in accounting estimate or principle is needed or whether prior-year financial statements ... by the accounting practices at CUC. 69 CLEANING UP AFTER THE GAME At some point, after reported financial results and position have been pushed to the bounda...

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... at the expense of shareholders. Further, if the earnings management activities are abusive, then there may be a material misstatement of financial perfor- mance. Others who rely on the firm’s financial ... five account- ing practices to control their reported financial results and position. The first three of these accounting practices, big bath charges, creative acquisit...

Ngày tải lên: 14/08/2014, 12:21

... and shipped after the close of the fiscal quarter.” 55 In the second transaction, the SEC noted: FastComm improperly recognized revenue of $57 9,000 during the quarter ended February 5, 1994, on two ... Mulford Callaway Professor of Accounting Invesco Professor of Accounting Source: Financial Numbers Game Survey 139 potentially fraudulent actions if they are presented t...

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... Inc.: Amortization Lives Goodwill 5 10 years Other Intangibles 5 10 years 57 From the annual report of LSI Logic Corp.: . . . the excess of the purchase price over the fair value of assets acquired ... acquisition costs equal to the difference between the fair value of the Company’s common stock on the date the warrants are issued and the exercise price of the warran...

Ngày tải lên: 14/08/2014, 12:21

... Mar. ’99 June ’99 Net sales $3,190, 755 $4,264,207 $3,203 ,52 4 $3,478,017 Gross profit on sales 841,2 75 1, 156 ,000 872, 659 930,979 Net earnings 14 ,55 0 52 ,349 58 ,818 56 ,608 Net LIFO charge (credit) 2,444 ... $4, 350 $4,919 $5, 782 $6 ,51 9 $6,748 Percent increase from — 13.1% 17 .5% 12.7% 3 .5% prior quarter Cost of goods sold $1 ,53 6 $1,748 $2,098 $2,378 $2 ,58 1 Inventory $6 9...

Ngày tải lên: 14/08/2014, 12:21

... 16,727 17, 153 General and administrative 5, 2 85 4 ,57 5 4, 155 Interest 1,9 25 6,1 75 8,420 Accelerated vesting and retirement benefits 5, 761 — — Impairment of oil and gas properties 43 ,50 0 — — ———– ... net income, the financial numbers game can involve the creative movement of items between income statement classifications. As the focus of users has moved away from...

Ngày tải lên: 14/08/2014, 12:21

... after nonrecurring items 6 25. 5 57 3.8 650 .2 Interest expense, net 101.9 55 .2 100.3 ———— ———— ———— Income before income taxes 52 3.6 51 8.6 54 9.9 Income taxes 187.7 186.7 192 .5 ———— ———— ———— Income ... management is running the shop. 4 The previous chapter laid out the GAAP requirements surrounding the income statement and also outlined how the financial numbers gam...

Ngày tải lên: 14/08/2014, 12:21

... method defined, 273 investments and, 258 Equity securities creative accounting practices, 256 58 defined, 273 generally, 255 realized gains and losses on sale, accounting for, 257 , 258 unrealized declines in ... 349 52 generally, 347 operating cash flow, importance of, 352 , 354 glossary, 3 75 77 operating cash flow capitalized expenditures, 3 65 67 discontinued operations and,...

Ngày tải lên: 14/08/2014, 12:21