Shuchi Nahar's Weekend Blog!

Understanding the details of Cashflow Shenanigans (Part-3) Shuchi. P. Nahar Link to Part-1:  https://myweekendspot.blogspot.com/2020/01/catch-trend-its-all-about.html Link to Part-2:  https://myweekendspot.blogspot.com/2020/01/checklist-to-understand-recording-of.html This blog is in the series of my previous three blogs. This blog will help an individual to understand the manipulation done in cash flow statement and help an investor to analyze the statements and be wary of cash flow shenanigans. With so many recent financial frauds going undetected, investors are increasingly questioning the value of the accrual-based figures shown on the Statement of Income. Time and time again, companies have duped investors by recording revenue too soon or hiding expenses. Some sophisticated investors claim that they realize that earnings can be manipulated and therefore put more faith in the “purer” cash flow from operations. While that’s certainly a step in the right direction, ...

Financial Shenanigans to be traced over the years (Part-1) Link for Part-2: https://myweekendspot.blogspot.com/2020/01/checklist-to-understand-recording-of.html Link for Part-3: https://myweekendspot.blogspot.com/2020/01/understanding-details-of-cashflow.html Follow for more updates:  @ shuchi_nahar While most companies act ethically and follow prescribed accounting rules when reporting their financial performance, some take advantage of gray areas in the rules (or worse, ignore the rules altogether) in order to portray their financial results in a misleadingly positive way. Management’s desire to put a positive spin on financial results has been around as long as corporations and investors themselves. Dishonest companies have long used these tricks to prey on unsuspecting investors, and it is unlikely that they will ever cease to do so. The lure of accounting gimmickry is particularly strong at companies that are struggling to keep up with their investors’ expectations...