Financial Shenanigans Fourth Edition

The bestselling classic from the “Sherlock Holmes of Accounting”—updated to reflect key case studies from the past quarter century and the dishonest tactics used to mislead investors.This fourth edition of the bestselling guide shines a light on the most shocking frauds and financial reporting offenders, and gives investors the tools they need to spot deceptive financial reporting in the global markets. This unparalleled guide provides the investigative tools you need to detect:* Corporate cultures that incentivize dishonest practices* The latest tricks companies use to exaggerate revenue and earnings* Techniques devised by management to manipulate cash flow as easily as earnings* Companies that use misleading metrics to fool investors about their financial performance* How companies use acquisitions to hide deterioration in their underlying businessYou’ll learn everything you need to know to unearth deceptive reporting and avoid costly mistakes. This new edition focuses on the key case studies from the past quarter century and brings you up to date on accounting chicanery in the global markets. Howard Schilit and his team of renowned forensic accounting experts reveal the most shocking frauds, expose financial reporting miscreants, and unveil the latest methods companies use to mislead investors.

Techniques to uncover and avoid accounting frauds and scams Inflated profits . . . Suspicious write-offs . . . Shifted expenses . . . These and other dubious financial maneuvers have taken on a contemporary twist as companies pull out the stops in seeking to satisfy Wall Street. Financial Shenanigans pulls back the curtain on the current climate of accounting fraud. It presents tools that anyone who is potentially affected by misleading business valuations­­from investors and lenders to managers and auditors­­can use to research and read financial reports, and to identify early warning signs of a company's problems. A bestseller in its first edition, Financial Shenanigans has been thoroughly updated for today's marketplace. New chapters, data, and research reveal contemporary "shenanigans" that have been known to fool even veteran researchers.

From the “ Sherlock Holmes of Accounting,” the tools you need to stay a step ahead of the crooks “Howard Schilit is the authority on forensic accounting. Financial Shenanigans is invaluable reading for market participants seeking to identify deceptive behavior in company financial statements.” Julian Robertson, legendary investor and founder, Tiger Management “A must-read! The authors teach forensic financial statement analysis in an easy-to-digest format with lots of war stories. Guaranteed to help investors in their quest to avoid ticking time bombs in their portfolios.” Marc A. Siegel, board member, Financial Accounting Standards Board “This is a timeless guide to better understand how financial malfeasance can be spotted early. Financial Shenanigans teaches all of us fraud-detection-made-easy.” Jules Kroll, pioneering private investigator and founder of Kroll Associates and K2 Global “Required reading for every investor who desires to avoid financial losses. This new edition is a classic and better than ever.” Thornton L. O’glove, author, Quality of Earnings “If the original Financial Shenanigans was the Bible of detecting accounting frauds, then this latest version is the Talmud of cooked books. Regulators, audit committee members, and business journalists should be required to read this work if they are involved in public companies.” Boris Feldman, partner, Wilson Sonsini Goodrich & Rosati, Palo Alto “An incisive and entertaining review of the recipes used by corporations and executives to ‘cook the books.’ It’s a must-read for investors, lawyers, corporate directors, and anyone else interested in the integrity of the accounting and governance process.” Joseph A. Grundfest, professor of law and business and codirector, Rock Center on Corporate Governance, Stanford Law School About the Book: With major financial scandals popping up in greater numbers—and with more inevitably on the way—it has never been more important for you to understand what dishonest companies do to trick investors. Since the early 1990s, Financial Shenanigans has been helping investors unearth deceptive financial reporting at the most critical time— before they suffer major losses. Now, the third edition broadens its focus to include the newest, most sophisticated techniques companies use to mislead investors. Referred to as the “Sherlock Holmes of Accounting” by BusinessWeek, Howard Schilit and renowned forensic accounting expert Jeremy Perler take you deeper into the corporate bag of tricks, exposing new levels of accounting gimmickry and arming you with the investigative tools you need to detect: Earnings Manipulation Shenanigans: Learn the latest tricks companies use to exaggerate revenue and earnings. Cash Flow Shenanigans: Discover new techniques devised by management that allow it to manipulate cash flow as easily as earnings. Key Metrics Shenanigans: See how companies use misleading “key”metrics to fool investors about their financial performance. Financial Shenanigans brings you completely up to date on accounting chicanery in the global markets, shining a light on the most shocking frauds and financial reporting miscreants. This insightful, detailed guide written by recognized experts on the subject provides the knowledge and tools you need to spot even the most subtle signs of financial shenanigans.

Shining a light on the most shocking frauds and financial reporting offenders, this unparalleled guide gives investors the tools they need to spot deceptive financial reporting in the global markets. --

Corporate financial reports. They re oftentimes the only place investors can turn for information about a business s overall health. But with major financial scandals popping up in greater numbers (and with more inevitably on the way), the time has never been better for a newly-revised edition of the classic guide to the games accountants play. The first two editions of Financial Shenanigans contained a wealth of information on how businesses play it fast and loose with earnings reports. And now the 3rd Edition builds on this strong foundation, broadening its focus to include global markets and arming us with all-new information on how to detect shenanigans in cash flow statements; EBITBDA, same-store sales, capitalization reports and corporate communications; and other sources. Other indispensable resources include: The latest information on other problem areas, including pension accounting, financial instruments, and off-the-balance-sheet entities Key sections on financial institutions Tips, tricks, and checklists to help you research businesses before you invest in them

Would a company with serious financial problems want to broadcast that fact in its corporate report? Of course not! Prospective investors and lenders should understand that some companies in hot water try to hide the fact with "creative accounting" techniques that provide a distorted picture of their financial health. Now a noted authority uncovers the gimmicks which can hide ailing finances. 20 illustrations.

From Simon & Schuster, Quality of Earnings is an investor's guide to how much money a company is really making. From Thornton L. O'glove, Quality of Earnings is an indispensable guide to determining how much money a company is really making and for buying and selling stocks without making costly blunders.

The updated, real-world guide to interpreting and unpacking GAAP and non-GAAP financial statements In Financial Statement Analysis, 5th Edition, leading investment authority Martin Fridson returns with Fernando Alvarez to provide the analytical framework you need to scrutinize financial statements, whether you’re evaluating a company’s stock price or determining valuations for a merger or acquisition. Rather than taking financial statements at face value, you’ll learn practical and straightforward analytical techniques for uncovering the reality behind the numbers. This fully revised and up-to-date 5th Edition offers fresh information that will help you to evaluate financial statements in today’s volatile markets and uncertain economy. The declining connection between GAAP earnings and stock prices has introduced a need to discriminate between instructive and misleading non-GAAP alternatives. This book integrates the alternatives and provides guidance on understanding the extent to which non-GAAP reports, particularly from US companies, may be biased. Understanding financial statements is an essential skill for business professionals and investors. Most books on the subject proceed from the questionable premise that companies' objective is to present a true picture of their financial condition. A safer assumption is that they seek to minimize the cost of raising capital by portraying themselves in the most favorable light possible. Financial Statement Analysis teaches readers the tricks that companies use to mislead, so readers can more clearly interpret statements. Learn how to read and understand financial statements prepared according to GAAP and non-GAAP standards Compare CFROI, EVA, Valens, and other non-GAAP methodologies to determine how accurate companies’ reports are Improve your business decision making, stock valuations, or merger and acquisition strategy Develop the essential skill of quickly and accurately gathering and assessing information from financial statements of all types Professional analysts, investors, and students will gain valuable knowledge from this updated edition of the popular guide. Filled with real-life examples and expert advice, Financial Statement Analysis, 5th Edition, will help you interpret and unpack financial statements.