Académique Documents
Professionnel Documents
Culture Documents
May-June 2018
Where Financial
Reporting Still Falls
Short
By H. David Sherman and S. David Young
HBR July-August 2016
Introduction
Problem 5:
Cooking the
Problem 4: Decisions,
Fair Not the Books
Problem 3: Accounting
Official Value
Problem 2: Earnings
Revenue Measures
Problem 1: Recognition
Universal
Standards
Solution
Taking help of
new analytical Benford’s Law Verbal cues The first years
tools
Conclusion
In order for financial statements to fulfill their important social and economic function,
they must reveal the underlying economic truth of a business.
In an imperfect world, we will never reach a point in which all reports are perfectly
and reliably true, but an understanding of their shortcomings and the availability of
new tools to detect manipulation can help us continue to strive for that ideal.