Accounting Magic Cube: Analyzing Distorted Accounting Information

Author: Zhang Xiao
Publisher:
Publish Date: 2004-03-01
Features: Know your enemy and know yourself, and you will win a hundred battles. To protect their interests, investors' best approach is to understand the tactics used by unscrupulous companies to make distorted financial information pass CPA audits and deceive investors. Accounting systems and standards are incomplete. , first, they cannot cover all economic transactions that have emerged; second, they cannot regulate new matters that arise after their issuance; third, they cover transactions, but the methods for standardizing these transactions are optional, and different accounting methods can result in different economic outcomes; fourth, the standardization methods provided by accounting standards and systems are based on estimates and judgments, leaving significant room for flexibility. Those who strictly disclose financial information in accordance with accounting standards and systems are honest, while those who exploit the incompleteness of these standards and systems to present the same economic transactions in different economic outcomes are "clever." The "clever" ones take advantage of the incompleteness of accounting standards and systems. This book tells you how these individuals exploit the incompleteness of accounting standards and systems, and also shows you how to surpass them, uncovering the subtle clues of their use of the incompleteness of these standards and systems, and correctly recognizing the true economic conditions of the companies behind the distorted financial information they provide.