The Financial Numbers Game Detecting Creative Accounting Practices

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Edition: 1st
Format: Paperback
Pub. Date: 2005-09-30
Publisher(s): Wiley
List Price: $35.50

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Summary

"After reading The Financial Numbers Game, I feel as though Ive taken a masters level course in financial statement analysis. Mulford and Comiskeys latest book should be required reading for anyone who is serious about fundamentally analyzing stocks." Harry Domash, San Francisco Chronicle investing columnist and investment newsletter publisher

Author Biography

Charles W. Mulford is the Invesco Chair and Professor of Accounting and Eugene E. Comiskey is the Callaway Chair and Professor of Accounting in the DuPree College of Management at the Georgia Institute of Technology in Atlanta. Both professors have doctorates in accounting and are professionally qualified as certified public accountants. In addition to their work at Georgia Tech, they actively consult with lenders at commercial banks in the United States and abroad. Professors Mulford and Comiskey have published articles on financial reporting and analysis issues in leading academic journals in the accounting and finance fields as well as in such widely read professional journals as the Commercial Lending Review and the Financial Analysts’ Journal. This is the authors’ third book. Their first, Financial Warnings, published in 1996, identifies the warning signs of future corporate earnings difficulties. Their second, Guide to Financial Reporting and Analysis, seeks to simplify the complexities of current-day generally accepted accounting principles as an aid to practicing financial analysts and other users of financial statements.

Table of Contents

Financial Numbers Game
1(18)
Rewards of the Game
2(6)
Classifying Creative Accounting Practices
8(5)
Plan of This Book
13(1)
Summary
14(1)
Glossary
15(1)
Notes
16(3)
How the Game Is Played
19(38)
Accounting Policy Choice and Application
19(20)
Fraudulent Financial Reporting
39(5)
Cleaning Up after the Game
44(5)
Clarifying Terminology
49(1)
Summary
50(1)
Glossary
50(2)
Notes
52(5)
Earnings Management: A Closer Look
57(36)
What Is Earnings Management?
58(2)
Incentives and Conditions for Earnings Management
60(2)
Earnings Management Techniques
62(6)
Evidence of Earnings Management
68(6)
Effectiveness of Earnings Management
74(8)
Is Earnings Management Good or Bad?
82(2)
Summary
84(2)
Glossary
86(2)
Notes
88(5)
The SEC Responds
93(34)
The Chairman's Speech
93(3)
The Action Plan
96(3)
Subsequent Developments
99(9)
Enforcing the Securities Laws
108(12)
Summary
120(2)
Glossary
122(1)
Notes
123(4)
Financial Professionals Speak Out
127(32)
Survey of Financial Professionals
129(4)
Survey Results
133(23)
Summary
156(1)
Glossary
157(1)
Notes
158(1)
Recognizing Premature or Fictitious Revenue
159(42)
Is It Premature or Fictitious Revenue?
160(5)
When Should Revenue Be Recognized?
165(20)
Detecting Premature or Fictitious Revenue
185(6)
Checklist to Detect Premature or Fictitious Revenue
191(2)
Summary
193(1)
Glossary
194(2)
Notes
196(5)
Aggressive Capitalization and Extended Amortization Policies
201(36)
Cost Capitalization
202(12)
Detecting Aggressive Cost Capitalization Policies
214(6)
Amortizing Capitalized Costs
220(6)
Detecting Extended Amortization Periods
226(3)
Checklist to Detect Aggressive Capitalization and Extended Amortization Policies
229(2)
Summary
231(1)
Glossary
231(2)
Notes
233(4)
Misreported Assets and Liabilities
237(42)
Link with Reported Earnings
238(1)
Boosting Shareholders' Equity
239(1)
Overvalued Assets
240(19)
Undervalued Liabilities
259(9)
Checklist to Detect Misreported Assets and Liabilities
268(3)
Summary
271(1)
Glossary
272(3)
Notes
275(4)
Getting Creative with the Income Statement: Classification and Disclosure
279(38)
Current Income Statement Requirements and Practices
280(12)
Reporting Comprehensive Income
292(3)
Creative Income Statement Classifications
295(9)
Creativity with Other Aspects of the Income Statement
304(7)
Summary
311(1)
Glossary
312(1)
Notes
313(4)
Getting Creative with the Income Statement: Pro-Forma Measures of Earnings
317(28)
Recasting the Bottom Line: Pro-Forma Earnings Measures
318(21)
Summary
339(1)
Glossary
340(1)
Notes
341(4)
Problems with Cash Flow Reporting
345(34)
Reporting Cash Flow
347(7)
Problems with Reported Operating Cash Flow
354(16)
Using Operating Cash Flow to Detect Creative Accounting Practices
370(3)
Checklist for Using Operating Cash Flow to Detect Creative Accounting Practices
373(1)
Summary
373(2)
Glossary
375(2)
Notes
377(2)
Subject Index 379(12)
Company Index 391

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