The financial numbers game detecting creative accounting practices phần 6 ppsx

... 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 warrants of $0.01. The amount of deferred ... lingering on the books from the 19 86 merger of Burroughs Corp. and Sperry Corp. that created Unisys. 4 The four examples identified in the opening quotes capture...

Ngày tải lên: 14/08/2014, 12:21

... 194– 96 goods ordered but not shipped, 160 , 161 goods shipped but not ordered, 161 , 162 nonexistent sales, 162 , 163 policy of company, understanding, 1 86 87 premature, 9, 10, 66 , 69 , 70, 160 , 161 , ... of, 85 examples of, 67 expense recognition, 66 , 68 generally, 62 , 66 proof of, 64 revenue recognition, 66 SEC actions against, 85 big bath, 33, 94 characterization of...

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 ... 40% 15 • Given the various creative accounting practices that can be used to play the financial numbers game, a classification scheme was devised to facili...

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 ... 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 boundar...

Ngày tải lên: 14/08/2014, 12:21

... 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 ... with these offerings. Rather, the performance of these issues suggests a possible overpricing upon issuance of the shares followed by underperformance of the shares in subse...

Ngày tải lên: 14/08/2014, 12:21

... of the last day of the quarter, and thus some or all of the unfinished product was packaged and shipped after the close of the fiscal quarter. 56 The SEC maintained that the manner in which these ... Mulford Callaway Professor of Accounting Invesco Professor of Accounting Source: Financial Numbers Game Survey 139 potentially fraudulent actions if they are presented t...

Ngày tải lên: 14/08/2014, 12:21

... 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 ... of a 60 -unit order. The sale comprised 28% of the company’s revenue for the quarter. Bill-and-hold accounting treatment was used as the goods were not shipped at the...

Ngày tải lên: 14/08/2014, 12:21

... March 2001. 60 . Statement of Financial Accounting Standards No. 121, Accounting for the Impairment of Long-Lived Assets (Norwalk, CT: Financial Accounting Standards Board, March 1995). 61 . The Wall ... occasions, companies that play the financial numbers game will overstate the value of assets received for the issue of stock. While bypassing the income statemen...

Ngày tải lên: 14/08/2014, 12:21

... 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 the bottom line, these alternative ... statement is the premier playground for those who engage in the financial numbers game. The goal of this chapter has been to outline the key features of the GA...

Ngày tải lên: 14/08/2014, 12:21

... 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 game could be played by creative classifi- cations ... computation of these pro-forma measures is considered along with their motivation, characterization, and disclosure. Their role in the financial numbers...

Ngày tải lên: 14/08/2014, 12:21