Study Guide - Detecting Creative Accounting Practices

The study guide is provided to guide you through the course material in a step by step format.

Course material is The Financial Numbers Game .  The cost of the text and free shipping is included in the price.

Prerequisite: None

Course level: Basic

Advanced preparation: None

Teaching method: Text and exam

 

Chapter 1. Financial Numbers Game.

The learning objectives for this lesson are to gain an understanding of:

  • Rewards of the Game
  • Classifying Creative Accounting Practices
  • Plan of This Book

Chapter 2. How the Game Is Played.

The learning objectives for this lesson are to gain an understanding of:

  • Accounting Policy Choice and Application.
  • Fraudulent Financial Reporting.
  • Cleaning Up after the Game.
  • Clarifying Terminology.

Chapter 3 . Earnings Management: A Closer Look.

The learning objectives for this lesson are to gain an understanding of:

What Is Earnings Management?

  • Incentives and Conditions for Earnings Management.
  • Earnings Management Techniques.
  • Evidence of Earnings Management.
  • Effectiveness of Earnings Management
  • Is Earnings Management Good or Bad?

Chapter 4. The SEC Responds. 

The learning objectives for this lesson are to gain an understanding of:

  • The Chairman's Speech.
  • The Action Plan.
  • Subsequent Developments.
  • Enforcing the Securities Laws.

Chapter 5. Financial Professionals Speak Out.

The learning objectives for this lesson are to gain an understanding of:

  • Survey of Financial Professionals.
  • Survey Results.

Chapter 6. Recognizing Premature or Fictitious Revenue. 

The learning objectives for this lesson are to gain an understanding of:

  • Is It Premature or Fictitious Revenue?
  • When Should Revenue Be Recognize
  • Detecting Premature or Fictitious Revenue.
  • Checklist to Detect Premature or Fictitious Revenue

Chapter 7. Aggressive Capitalization and Extended Amortization Policies.

The learning objectives for this lesson are to gain an understanding of:

  • Cost Capitalization.
  • Detecting Aggressive Cost Capitalization Policies.
  • Amortizing Capitalized Costs.
  • Detecting Extended Amortization Periods
  • Checklist to Detect Aggressive Capitalization and Extended Amortization Policies.

Chapter 8. Misreported Assets and Liabilities. 

The learning objectives for this lesson are to gain an understanding of:

  • Link with Reported Earnings.
  • Boosting Shareholders' Equity.
  • Overvalued Assets.
  • Undervalued Liabilities.
  • Checklist to Detect Misreported Assets and Liabilities.

Chapter 9. Getting Creative with the Income Statement: Classification and Disclosure.

The learning objectives for this lesson are to gain an understanding of:

  • Current Income Statement Requirements and Practices.
  • Reporting Comprehensive Income. Creative Income Statement Classifications.
  • Creativity with Other Aspects of the Income Statement.

Chapter 10. Getting Creative with the Income Statement: Pro-Forma Measures of Earnings.

The learning objectives for this lesson are to gain an understanding of:

  • Recasting the Bottom Line: Pro-Forma Earnings Measures.

Chapter 11. Problems with Cash Flow Reporting.

The learning objectives for this lesson are to gain an understanding of:

  • Reporting Cash Flow.
  • Problems with Reported Operating Cash Flow.
  • Using Operating Cash Flow to Detect Creative Accounting Practices.
  • Checklist for Using Operating Cash Flow to Detect Creative Accounting Practices

 

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