Mind The "GAAP" (Or How The Game Is Really 'Rigged') | Zero Hedge

Mind The "GAAP" (Or How The Game Is Really 'Rigged') | Zero Hedge: "While we agree with Warren, the problem is that the issue goes much deeper.  Even within the confines of "GAAP" reporting, CFO's have a number of levers that can be pulled to "manage" earnings.  Aggressive accrual policies, while they might technically be GAAP-compliant, make it pretty easy to move expenses from the P&L to the balance sheet...and the best part of all is that when accruals get too bloated then they can be expensed in a 1x charge that wall street conveniently adds back as "extraordinary."  The bottom line is that the game is rigged and if you're going to play it then you better be well trained at finding the shenanigans.  "



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