Cooked up Balance Sheets: Case Studies How to Decode Them

In an era where financial complexities often mask the true nature of corporate activities, the need for transparency and ethical conduct has never been greater. The objective of this book is twofold: to empower even those without a financial background to understand the misuse of balance sheets for various vested interests, and to serve as a guide for professionals on how to identify frauds in financial statements and plan mitigation measures.
Features of the Book
Educational Case Studies: The book contains 50 meticulously crafted case studies that span various industries and types of businesses. Each case study is followed by a detailed analysis that explains how to identify the financial manipulations and what could be the potential implications, such as money laundering or tax evasion.
IFRS Standard Presentation: All financial statements in the case studies are presented as per the International Financial Reporting Standards (IFRS), making them universally applicable.
Notes and Disclosures: To provide a comprehensive understanding, relevant extracts of notes to accounts and any disclosures are included.
Step-by-Step Solutions: Each case study is followed by a solution that not only identifies the fraudulent activity but also explains how it was identified, thereby serving as a practical guide for auditors and accountants.
Mitigation Strategies: The book offers actionable insights into how users of financial statements can mitigate risks associated with financial fraud.
1: XYZ Tech Corp.- Revenue Inflation & Related Party Transactions
2: Alpha Healthcare Inc.-: Asset Overstatement & Phantom Revenue
3: Beta Motors Inc. Inventory Manipulation & Cost Shifting
4: Delta Airlines Co. -: Unrealized Foreign Exchange Gains
5: Gamma Pharmaceuticals Inc.-: Manipulation of Depreciation and Amortization Expenses
6: Beta Electronics Ltd.-: Inventory Valuation Manipulation
7: Delta General Trading Co.-: Revenue Recognition Manipulation
8: Gamma Trading Co.-: Cash Handling and Revenue Skimming
9: Omega Real Estate Corp. -: Asset Inflation and Off-Balance Financing
10: Beta Retailers Inc. -: Inventory Manipulation and COGS Inflation
11: LocalBake Café -: Cash Inflow Manipulation and Revenue Overstatement
12: GreenTech Energy Solutions-: Asset Overvaluation and Depreciation Manipulation
13: AgroTrade Co.-: Inventory Inflation and Trade Payables Manipulation
14: QuickFix Auto Repairs-: Revenue Inflation and Expense Underreporting
15: Elite Art Gallery-: Unaccounted Money Infiltration and Loan Manipulation
16: Green Energy Solutions-: Asset Overvaluation and Liability Underreporting
17: OceanView Resorts-: Balance Sheet Manipulation
18: Skyline Aviation-: Revenue Recognition Manipulation
19: GreenLeaf Pharmaceuticals-: Overstating Expenses
20: OceanView Resorts -: Hidden Liabilities
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31: GreenTech Energy Solutions – Off-Balance Sheet Financing and Deferred Tax Liabilities
32: OceanView Resorts – Inflated Asset Valuation and Understated Expenses
33: AutoMoto Inc. – Overstated Revenue and Hidden Liabilities
34: Cash Skimming and Unrecorded Sales
35: GreenTech Energy – Off-the-Books Financing and Inflated Asset Valuation
36: Global Trade Group – Inflated Investments and Offshore Transactions
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40: Omega Pharmaceuticals – Concealing Contingent Liabilities and Off-Balance Sheet Financing
41: Delta Airlines – Revenue Smoothing and Cookie Jar Reserves
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43: Stratagem Consulting Group – Inflated Intangible Assets
44: TerraHoldings Inc. – A Holding Company Real Estate and Investments
45: FabriTrade Inc. – Textiles Trading with Unsecured Loans and Inflated Investments
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49: SpiceWorld Inc. – Import and Export of Spices and Food Grains with Inflated Revenue and Hidden Offshore Accounts