The financial numbers game detecting creative accounting practices phần 10 ppsx

... it is recommended that the analyst review carefully the ratios outlined in Chap- ter 8 and consider the implications for creative accounting practices detailed there. The limited exceptions where ... Staff Accounting Bulletin, 99, 100 , 101 software revenue, 22, 23 when to recognize, 165–68 Rewards of creative accounting bonus plan effects, 6, 7 borrowing cost effects,...

Ngày tải lên: 14/08/2014, 12:21

... 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 ... 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...

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

... 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 boundaries of GAAP, or beyond, by either the ... direction or another. FRAUDULENT FINANCIAL REPORTING In the majority of cases in which the financial numbers game is played, accounting pol- icy choice and applicati...

Ngày tải lên: 14/08/2014, 12:21

... bank- ruptcy. 34 Financial statements must be included with Forms 10- K and 10- Q, and in Form 10- K the financial statements must be audited. As with the registration statement, Form 10- K must be signed by the ... at the expense of shareholders. Further, if the earnings management activities are abusive, then there may be a material misstatement of financial perfor- manc...

Ngày tải lên: 14/08/2014, 12:21

... Mulford Callaway Professor of Accounting Invesco Professor of Accounting Source: Financial Numbers Game Survey 139 potentially fraudulent actions if they are presented to them. Whether such actions actu- ally ... 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 mainta...

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 ... 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

... occasions, companies that play the financial numbers game will overstate the value of assets received for the issue of stock. While bypassing the income statement, the net effect is still an increase ... forecasts for the quarter by two cents per share. 53 As with IBM, the timing of the sale was presumably a function of factors other than making Wall Street’s estimates....

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 ... for the year ending December 31, 2000, to the extent that they are in the 2001 interim earnings releases. The high profile of the pro-forma results i...

Ngày tải lên: 14/08/2014, 12:21