The financial numbers game detecting creative accounting practices phần 3 docx

... corporations with the same brush, unfairly so.” 30 Asanother member of the FEI noted, The SEC shouldn’t punish the whole financial com-munity for the sins of a few.” 31 Another agrees, stating “They’re ... examine the workings of the Division ofEnforcement, including the penalties available to it in the event of noncompliance.Securities ActsCollectively, the Securities Act of 1 933 (1 933 Act) and the ... five account-ing practices to control their reported financial results and position. The first three ofthese accounting practices, big bath charges, creative acquisition accounting, and cookiejar...

The financial numbers game detecting creative accounting practices phần 1 pps

... Creative Accounting Practices 37 0Checklist for Using Operating Cash Flow to Detect Creative Accounting Practices 37 3Summary 37 3Glossary 37 5Notes 37 7Subject Index 37 9Company Index 39 1ContentsTEAMFLY ... 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 ... goods $ 43, 571 $ 35 ,645 $ 36 ,248Goods in process 28,881 32 , 730 30 ,768Raw materials 11,879 20,676 13, 200Supplies (at average cost) 42 ,32 2 42,907 39 ,797———– ———– ———–126,6 53 131 ,958 120,0 13 LIFO...

The financial numbers game detecting creative accounting practices phần 2 pps

... million. Creative Classifications within the Financial StatementsIn some instances, the financial numbers game is played in the manner in which amountsare presented in financial statements themselves ... up after the financial numbers game. As seen in the exhibit, the appropriate adjustment depends on whether achange in accounting estimate or principle is needed or whether prior-year financial statements ... by the accounting practices at CUC.69CLEANING 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...

The financial numbers game detecting creative accounting practices phần 4 ppt

... of 1 934 , § 13 (1 934 ). 35 . The URL is http:/www.sec.gov/. There is a link for the Enforcement Division. 36 . Securities Exchange Act of 1 934 , § 13( a) (1 934 ). 37 . Ibid., § 13( b)(2)(A) (1 934 ). 38 . Ibid., ... § 13( b)(2)(B) (1 934 ). 39 . Ibid., Rule 12b-20 (1 934 ).40. Ibid., Rule 13b2-1 (1 934 ).41. Ibid., Rule 13a-1 (1 934 ).42. Ibid., Rule 13a- 13 (1 934 ). 43. Ibid., § 13( b)(2)(B)ii (1 934 ).44. SFAS No. 133 , ... Securities Act of 1 933 and Sections 10(b), 13( a), 13( b)(2)(A), and 13( b)(2)(B) and Rules 10b-5, 12b-20, 13a-1, and 13a- 13 of the 1 934 Act. At the time of this writing, these and other charges had...

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 topay the buyers of the loan-backed securities. When properly executed, there ... this sale. 39 Compounding the problem, however, was the fact that, based on our reading of the company’s 10-Kannual report filing with the SEC for the year ended March 31 , 1996, the related-partytransaction ... to its investors. At the time of sale, the company would use gain-on-sale accounting. It would record as profit the excess of (1) the sales price and the presentvalue of the estimated interest...

The financial numbers game detecting creative accounting practices phần 6 ppsx

... its machinery and equipment by $33 , 834 ,000 ($ 135 ,33 7,000 divided by 4, assuming the straight-line method and noresidual value). If the company were to extend the average useful lives of its ... 23, 412Charges to the reserve and assets written off (10,217) — (1 ,32 1) (2,197) ( 13, 735 )Balance at June 28, 1998 — 3, 200 3, 852 2,625 9,677Charges to the reserve — (927) (5, 039 ) (2,111) (8,077)Reserve ... acquisition costs equal to the differencebetween the fair value of the Company’s common stock on the date the warrants are issuedand the exercise price of the warrants of $0.01. The amount of deferred...

The financial numbers game detecting creative accounting practices phần 7 doc

... 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 ... $4 ,35 0 $4,919 $5,782 $6,519 $6,748Percent increase from — 13. 1% 17.5% 12.7% 3. 5%prior quarterCost of goods sold $1, 536 $1,748 $2,098 $2 ,37 8 $2,581Inventory $695 $878 $1, 232 $1,956 $2, 533 Percent ... 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.Nonetheless, the sale and the method...

The financial numbers game detecting creative accounting practices phần 8 doc

... income $1 23, 729 $118,720 $ 136 ,31 7Interest expense (2 93, 220) (32 6,207) (37 7,404)Net gains on marketable securities 36 ,544 101 ,31 9 10,1 03 Equity in earnings (losses) of affiliates 20 ,36 4 (4,2 73) 88,206Other ... disposition and termination of 4,152 12,290 3, 830 operationsForeign currency transaction losses 15,580 11,7 73 3 ,33 3Miscellaneous 3, 199 1,815 4,5 83 ———– ———– ———–$ 23, 365 $26,046 $29,540———– ———– ———–———– ... item. The ADM“Other expense” note is presented in Exhibit 9. 13. Given the size of the numbers in the ADM income statement—year 2000 net incomeof $30 1 million the $26 million decrease in “Other...

The financial numbers game detecting creative accounting practices phần 9 doc

... Corporate Information on Public Companies Filing with the SEC (Bethesda, MD:Disclosure, Inc., June 2000). 33 3 Financial Reporting of the AICPA. 37 The other major nonrecurring item in Cooper’sincome ... computation of these pro-formameasures is considered along with their motivation, characterization, and disclosure.Their role in the financial numbers game is also explored.RECASTING THE BOTTOM ... ourresults.42 The Amazon.Com pro-forma measures are not showcased in the 10-K report, for the year ending December 31 , 2000, to the extent that they are in the 2001 interim earningsreleases. The high...

The financial numbers game detecting creative accounting practices phần 10 ppsx

... 15, 37 6Earningsaccrual based, 34 7adjusted or sustainabledefined, 88, 34 0, 34 1generally, 32 9, 33 0, 33 9, 34 0interim pro-forma earnings releases, 33 6 39 nonrecurring classification, 33 4, 33 6nonrecurring ... EBITDA, 34 0 financial covenants based on, 79, 32 4, 32 5generally, 76, 79, 31 9, 33 9income statement creativity and, 32 5interfirm comparability, lack of, 32 6, 32 7margin, 34 1measurement of, 31 9–22net ... with detecting creative accounting practices adjusted cash flow-to-income ratio, 37 0–72checklist, 37 2, 37 4generally, 37 0generally, 9, 13, 34 5, 34 6, 37 4, 37 5generally accepted accounting principles...

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