• Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint
Share this Page URL
Help

Chapter 6. Growing Mushrooms: The Art of... > Red Flag 8: A Company Doesn’t Includ...

Red Flag 8: A Company Doesn’t Include Accounting Policy Details in Its Press Release

Without information about accounting policies, it is again difficult for investors to tell whether the CFO is an honest figure or a creative genius. Waiting for the filing is not good enough—investors may already have been taken for a ride. The company should say how it has accounted for asset sales and purchases, pension income and deficits, and gains or losses from investments and what it considers revenue and when it is booked. For cable TV companies, financial disclosures should also include important information such as churn rates, which tell us the speed at which they lose customers, and how fees from long-term advertising contracts are booked.


PREVIEW

                                                                          

Not a subscriber?

Start A Free Trial


  
  • Creative Edge
  • Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint