Cheat Sheet: Number Crunching (refresher course)
ecompany.com
What the Numbers Reveal
The SEC and the Financial Accounting Standards Board (FASB) take number crunching seriously. Here's what they're studying -- and finding.
"Accounting in Wonderland,"
ecompany.com
by Jeremy Kahn (Fortune, March 19, 2001). A trip through General Electric's looking glass, where no one -- not even the number crunchers -- seems to know fantasy from reality.
"Hocus-Pocus,"
by Bethany McLean (Fortune, June 26, 2000). Do you want to believe in the IBM miracle? Then don't look too closely at the numbers.
"If the Numbers Look Fishy, Here's the Man to Call,"
by Nelson Schwartz (Fortune, April 26, 1999). Howard Schilit of the Center for Financial Research and Analysis is a forensic accountant who looks for accounting fraud. At the center's website there's a discussion of seven financial shenanigans and information about his book, Financial Shenanigans. See also the sample reports.
"Poor Relations: The Problem With Related-Party Deals,"
by Herb Greenberg (Fortune, Feb. 5, 2001). SEC investigators are reportedly looking into whether Lernout & Hauspie, through apparent related parties, helped launch some questionable companies that accounted for a big chunk of its revenue in the past year.
"When Insider Sales Really Count,"
by Herb Greenberg (Fortune, Oct. 2, 2000). If a CEO is selling his own stock, do you want to buy it? Perhaps you do. When -- and why.
"Eight 'Warnings' You Want to See,"
by Herb Greenberg (Fortune, June 26, 2000). How reading between the lines in financial forms can lead you to good stock investments.
"What Foreign Stocks Don't Tell You,"
by Herb Greenberg (Fortune, June 21, 1999). Why EDGAr is rich in information on American corporations like Intel but scanty on companies like Sony. |
