>Fortunately, the investor is not completely at the mercy of the corporate money >magicians. Often, when executives attempt to distort one measure of financial >performance, the problem shows up elsewhere. The authors offer a detection kit for >each area of earnings management - for example, if premature or fictitious revenue >is recognised, there will be a sudden increase in accounts receivable.
The author says this as if it were some sort of strange karmic influence. The fact that attempts to manipulate the P&L account show up as anomalies in the balance sheet is precisely the reason why double-entry bookkeeping is so popular. dd ___________________________________________________ Email Disclaimer This communication is for the attention of the named recipient only and should not be passed on to any other person. Information relating to any company or security, is for information purposes only and should not be interpreted as a solicitation or offer to buy or sell any security. The information on which this communication is based has been obtained from sources we believe to be reliable, but we do not guarantee its accuracy or completeness. All expressions of opinion are subject to change without notice. All e-mail messages, and associated attachments, are subject to interception and monitoring for lawful business purposes. ___________________________________________________
