Cooking the Books: Techniques to Puff Up the Income Statement

A.  Improperly increased revenue
B.  Improperly lowered cost or expenses.

A.  Improperly increased revenue

A1.  Sales recorded before completed and final

• A1a.  Goods shipped before sale final
• A1b.  Revenue recorded while future services still due

A2.  Bogus revenue recorded

• A2a.  Supplier refunds recorded as revenue
• A2b.  Revenue recorded from self-dealing
• A2c.  Revenue recorded from asset exchanges.

B.  Improperly lowered costs or expenses

B1.  Current expenses shifted into later periods

• B1a.  Period expenses capitalised onto Balance Sheet
• B1b.  Assets depreciated too slowly.
• B1c.  Probable liabilities not accrued.

B2.  Operating losses masked in discontinued operations

"Cooking the books" means intentionally hiding or distorting the real financial performance or actual financial condition of a company.

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• Related:
• Cooking the Books: Why do managers cook the books?
• Cooking the Books: This is very different from "Creative Accounting"
• Cooking the Books: Puffing up the Income Statement
• Cooking the Books: Techniques to Puff Up the Income Statement
• Cooking the Books: Sweetening the Balance Sheet
• Cooking the Books: Techniques to Sweeten the Balance Sheet
• Cooking the Books: The Auditor's Job
• Cooking the Books: Investors, be warned.