Accounting Magic Cube -- Analysis of Distorted Accounting Information

Author: Zhang Xiao
Publisher:
Publish Date: 2004-06-01
Features: Know your enemy and know yourself, and you can win a hundred battles without danger. To protect their interests, investors' best approach is to understand the methods used by unscrupulous companies to make distorted financial information pass CPA audits and deceive investors. Accounting systems and standards are incomplete. , they fail to cover all economic transactions that have emerged; second, they cannot regulate new matters that arise after their issuance; third, they cover transactions but allow for optional methods of regulation, with different accounting methods yielding different economic results; and fourth, the regulatory methods they provide 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 ways are "clever." The "clever" ones take advantage of the incompleteness of accounting standards and systems, and this book tells you how they do so. It also shows you how to surpass them, uncover the subtle clues of their exploitation of the incompleteness of accounting standards and systems, and correctly recognize the true economic conditions of the companies behind the distorted financial information they provide.