Aspects from the outlook of income manipulat

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is one accounting,Gucci Shoes, while not rocket science, but it is a excellent subject. What listed companies regardless of income manipulation techniques, once and for all, is to quit some traces. These marks is what we normally refer to the warning marker. If the following warning signs may signify the subsistence of listed company earnings treatment behavior:
1. Receivables growth than sales growth. This could average that:
(1) remission of credit conditions listed companies to boost sales. For example, the bones (Oracle) 1990 years of sales revenue additional by 66% in 1989, but the accounts acceptable has increased at 79%, while the new Oracle accounts acceptable turnover days up to 160 days, 62 extra than the software manufacture days, nearly 100 extra days. After the examine, the corporation earnings in 1990 faced the colossal oppression, the extensive bulk of sales amends and sales of income-linked, because sales people at ease credit conditions along increasing revenue. This short-sighted behavior had led to Oracle's $ 42,000,000 in early 1991 confirmed that the wrong debts, accounting for 36% of web profit in 1990.
(2) Listed companies use Such as brightness Electric Company sales in 1997 up to $ 1,168,000,000, compared with $ 984,000,000 in 1996 increased 19%, but the end of 1997 than the end of 1996, receivables increased by 39%. Sunshine electrical control method of income is the
(3) listed companies via the supplementary accession or verbal concert to conceal return conditions, early admission of revenue.
2. Provision for colossal bad debts. May mean that its revenue recognition policy does not sound extreme or artificial confirmed the before year's sales revenue.
example, Z 1992-2001 listed $ 7,495,Gucci Shoes 2010,000,Mens Gucci Boots,000 total sales,Mens Gucci Moccasins, but the company's accounts receivable in 2001 Quedui a $ 1,281,000,000 provision for bad debts (of which $ 979,000,000 was deserving from associated parties Provision for bad debts), the equilibrium of accounts receivable for bad debts up to $ 1,607,000,000, characterizing sales revenue over the elapse 10 years, 21%, indicating that the company not merely through the manipulation of revenue associated with trading, and its revenue recognition policies, extreme sound.
3. Gross margin before and later the accretion of massive fluctuations happen. May mean namely listed companies will purchase ahead the purchase of earnings deferred apt future confirmation, alternatively the cost of the purchase in the future in advance to validation ahead purchase.
example, Y listed company in June 1999 the company acquired the W, W 1st half of 1999 the company's gross profit margin was 5.26%,Womens Gucci Flats, while in the second half as lofty as 25.74%. By delaying the recognition of revenue and costs recognized in advance, Y got his hope to be chapter of the listed company should have recognized in the first half of 1999 procrastinated to the second half of the revenue is acknowledged, so as to achieve to lest the Ministry of Finance above the acquisition of future profits tin only contain the acquisition of a affair medley report requirements.
4. sales revenue and production capability imbalance.
sales and production capacity is clearly closely related. Revenue likely to be fictional, but the production capacity is difficult to be tampered with. Some listed companies in the mythical sales, we constantly ignore the sales revenue and production capacity relationship. Listed companies through the thinking of production capacity, and with the industry file (such as sales rate) and market share message such as cross-review is to detect fictitious sales of listed companies is 1 forcible means.
5. with customers, set for trading.
If the listed company to its customers in selling products or providing services at the same time, in the want of legitimate business causes for a large digit of cases and receivable to the customer to purchase products or services, and transaction prices are obviously unfair or additional characteristics, then should be concerned approximately if the use of the listed company and buyer revenue transactions sets for manipulation.
6. revenues from narrated sales.
If the listed company's revenues from related party transactions, nevertheless it can solve the problem of markets for their products, but this is not a listed company and the market to achieve an neutral amount judgments and bargaining by the parties to reach, and does not reflect the listed companies the gist competitiveness. Related party transactions identified by sales revenue, there is uncertainty not only its sustainability, and the transaction size and transaction costs easily manipulated.
7. bargains revenue and operating cash stream divergence.
advance to confirm sales of listed companies to wield the maximum mutual means of income, its meaningful financial specifics of sales revenue and operating cash flow of a serious departure from.