Deceptive Accounting Practices: Asset and Liability Manipulation (Course Id 2419)

This course explores deceptive accounting practices used by companies to manipulate assets and liabilities. Participants will learn about specific asset manipulation techniques such as overvaluation of inventory, overstating of accounts receivables, valuation of intangible assets, and overstating deferred tax assets. Participants will also learn about liability manipulation techniques such as underreporting liabilities, off-balance-sheet financing, improper use of contingent liabilities, and hiding pension obligations.  The course includes detailed examples and highlights the ethical implications and legal consequences of these practices.

NASBA QAS - Text - NASBA Registry - 2419

Course Learning Objectives

• Recognize the key motivations behind deceptive accounting techniques
• Identify areas of U.S. GAAP that are most susceptible to manipulation
• Identify techniques used by companies to manipulate asset valuation in financial statements
• Recognize techniques used by companies to conceal or misstate liabilities

Chapter 1 - Deceptive Accounting Practices: Asset and Liability Manipulation

Course Learning Objectives

Course Overview

Introduction

U.S. GAAP Susceptible to Deceptive Accounting

Enron & WorldCom

Asset Manipulation Techniques

Overvaluation of Inventory

Overstating Accounts Receivable

Inflating Fixed Assets

Valuation of Intangible Assets

Overstating Deferred Tax Assets

Review Questions

Liability Manipulation Techniques

Underreporting Liabilities

Off-Balance Sheet Financing

Reclassifying Liabilities

Improper Use of Contingent Liabilities

Using Complex Financial Instruments

Hiding Pension Obligations

Misclassifying Debt as Equity

Review Questions

Glossary of Key Terms