|
so:text
|
A corporate manager, interested in playing a numbers game with stock price-earnings ratios for quick profits, is able to inflate current reported profits at the expense of future profits. The methods are legion: shift from accelerated to straight-line depreciation; defer or stretch out maintenance expense; deplete inventories held at low cost; sell assets for ‘one-shot’ income. Excessive flexibility in permissible accounting methods creates opportunities for misleading reports of profits. (en) |
