ถึงคุณ HARRY ผมทำสรุปหนังสือเล่มนี้ไว้แล้วน่ะครับ
เพื่อนที่สนใจลองแวะเข้ามาอ่านก็ได้ แต่ไม่แน่ใจว่าเนื้อหาที่สรุปมาจะ OK
Financial Shenanigans
What are Shenanigans?
Shenanigans are actions or omissions designed to hide or distort the real financial performance or financial condition of a company
Why do Shenanigans Exist?
It pays to do it (greed factor)
It may boost performance-related bonuses
It may prevent negative outcomes (fear factor)
It may help company obtain financing
It may dispel negative market perceptions
It may help company financing covenants
It is easy to do it
It is unlikely you will get caught
What Types of Companies are Most Likely to Use Shenanigans?
Companies with a weak control environment
- No independent members
- Lack of competent/independent auditor
- Inadequate internal audit function
Management facing extreme competitive pressure or known or suspected of having questionable character
Small fast-growth
Newly-public companies
Privately held companies
Basket-case companies
Schilits Seven Shenanigans
1. Recording revenue too soon
2. Recording bogus revenue
3. Boosting income with one-time gains
4. Shifting current expenses to a later or earlier period
5. Failing to disclose all liabilities
6. Shifting current income to a later period
7. Shifting future expenses into the current period
Shenanigan No:1
Recording revenue too soon
Shipping goods before sale is finalized
Recording revenue when important uncertainties exist
Recording revenue when future services are still due
Shenanigan No. 2:
Recording bogus revenue
Recording income in exchange for similar assets
Recording refunds from suppliers as revenue
Using bogus estimates on interim financial reports
Shenanigan No. 3:
Boosting Income with One-time gains
Boosting profits by selling undervalued assets
Boosting profits by retiring debt
Failing to segregate non-recurring activities
Shenanigan No. 4:
Shifting Current Expenses to Later Period
Improperly capitalizing costs
Depreciating or amortizing costs too slowly
Failing to write off worthless assets
Shenanigan No. 5:
Failing to disclose all liabilities
Reporting revenue when cash is received in advance of providing services
Failing to accrue expected or contingent liabilities
Failing to disclose all material commitments and contingencies
Engaging in transactions to keep debt off books
Shenanigan No. 6:
Shifting Current Income to Later Period
Creating reserves and releasing them into income in a later period
Shenanigan No. 7:
Shifting Future Expenses to Current Period
Accelerating discretionary into the current period
Writing off future years depreciation and amortization during the current year