International Management Profit Control Means Analysis And The Corresponding Adjustment

Financial Statement is considered an important part for an enterprise, because it includes allinformation about what the enterprise is doing and what it's going to do. When we have to dealwith an enterprise, it's not realistic to go straight in and ask everyone we meet, that's why a fullydisclosed financial statement could be so important for analyzing. However, modern financialstatement is formed on an accrual basis, giving managers many different ways to write down theirdealings, so earnings manipulation could be on agenda. Putting myself on an analyst position, Ioffered many common methods with which managers could manipulate their earnings. For eachmethod, I gave you some tricks and adjustment, once financial statement is made after theseadjustments, we could find the real economic status. Domestic financial rules are quite differentfrom International GAAP, plus earning manipulation is common among multinational companies,like Enron, so I focus on US GAAP.