Financial Shenanigans Book

Financial Shenanigans Book - Financial Shenanigans Book...

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Financial Shenanigans Book Chapter 1- You can fool some of the people all the time CUC/Cendant - They sold various types of club memberships to consumers - They would inflate their operating income -Increased by overstating purchase and merger reserves - They made sure to report what wall street wanted to see - They recorded sales revenue early and expenses later - They would transfer the money from deferred revenue to meet their mark - The way they would increase their merger reserves would be to merge with another company, and this is what kept their scheme alive. - They used aggressive accounting for marketing costs during the earlier years to inflate profits Informix - A database management company, biggest fraud by a tech company - They were performing a number of side agreements with customers - The company gave its customers side letters that materially modified the terms of the sale or all the customer to nullify the sale Waste Management -Made expenses disappear - They would shift expenses to later periods to boost profits now - They would make adjustments that would only affect financial statements as one time charges - The auditors of Arthur Anderson knew what was going on and still turned their head - They were too comfortable with each other, so it made it easier to turn a blind eye
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This note was uploaded on 10/20/2010 for the course ACCT ACCT800 taught by Professor White during the Spring '09 term at University of Delaware.

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Financial Shenanigans Book - Financial Shenanigans Book...

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