... options may be giving too much of the com-
pany away.
R ED F LAG
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Financial Fine Print
82
Almost all companies report two earnings per share numbers
each quarter: basic ... options accounting rule was misleading to average
investors. In August alone, 57 companies—almost two a day—
announced that they would take options accounting out of the
c 05. q...
... the
company.
“We’re taking a lot harder look at management teams,” says
that analyst. “The idea that assets and cash flows can win out in
spite of poor management is no longer valid.”
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Financial Fine Print
104
actually declined. That make-believe gain shows up on the income
statement and can make both net and operating income look
better than th...
... 7/ 15/ 03 9 :56 AM Page ii
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Financial
Fine Print
Uncovering a
Company’s True Value
MICHELLE LEDER
John Wiley & Sons, Inc.
ffirs.qxd 7/ 15/ 03 9 :56 AM Page iii
In ... Key SEC Filings
1 65
Appendix B A Brief Walk through Qwest’s Fine Print
169
Notes
1 75
Index
183
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Financial
Fine Print
Unc...
... individual investors
approach financial reports the way that Neuville does. Indeed, at
least before the accounting scandals of 2001 and 2002, most of us
were apt to take financial results at face value, ... are the company’s revenue recog-
nition policies and depreciation rates, two items that can have a
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Financial Fine Print
46
Given the growi...
... releases and financial reports need to
maintain a healthy skepticism and accept no statement at face
value, ” the Bear Stearns report warned. “Since [pro forma] earn-
ings are almost always higher than ... charge.
Rodgers has repeatedly advocated the creation of a pro forma
accounting standards board, “chartered to make clear, consistent
corrections to the GAAP statements.”
9
Financia...
... by passing the
Sarbanes-Oxley Act in July 2002, and FASB and the SEC each
issued rules designed to deal with off-balance sheet transactions in
January 2003. For companies that are on a calendar ... sheet
obligations? Because they can mask a company’s true financial
condition, making it look stronger than it really is. Pushing debt
and other obligations off the balance sheet changes...
... an SPE. Doing this
reduces debt and keeps the obligation off a company’s balance
sheet. In a typical synthetic lease, a company’s financial partner—
a bank or other financial institution—creates ... theoreti-
cally, the corporate tax rate is 35 percent, few companies actually
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134
although presumably, as a parti...
... in a long line
of upstart telecommunications companies until it purchased US
APPENDIX B
A Brief Walk
through Qwest’s
Fine Print
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Financial Fine Print
152
What ... began teaching at Colorado State University’s
CHAPTER 10
Changing
the World
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Financial Fine Print
160
corporations they’re seeking to c...