Accounting ‘Shenanigans’ Are More Common Than Investors Think
9 March 2015
Learn How to Navigate the Non-GAAP Smokescreen and Protect Client Capital
NEW YORK–(BUSINESS WIRE)–March 09, 2015–
The New York Society of Security Analysts (NYSSA) will shed light on the trickery some companies employ to mislead Wall Street and show how to spot the red flags before getting victimized with Financial Shenanigans March 12.The seminar will be led by Howard Schilit and Jeremy Perler of Schilit Forensics, who will walk attendees through what Schilit calls a “gray area” that has frequently fooled even seasoned financial analysts and enabled companies to deceptively inflate their market values.
“Management may not necessarily engage in outright fraud to overstate the health of a company,” explained Schilit, co-author with Perler of Financial Shenanigans: How to Detect Accounting Gimmicks and Fraud in Financial Reporting.
In fact, according to Schilit, there are commonly used tricks “to put a positive spin on results with metrics that appear GAAP compliant,” which analysts or portfolio managers are not traditionally trained to scrutinize, but which “on paper prop up the outlook for a company.”
The result, Schilit said, is a “financial house of cards. Meanwhile, the media, which never questioned the company, is now reporting a scandal.”
The seminar will take place from 12 p.m. to 2 p.m. at the NYSSA Conference Center. To register to attend, please visit the NYSSA website.
Founded in 1937 by value investing pioneer Benjamin Graham, the New York Society of Security Analysts (NYSSA) is a leading forum for the financial services industry and a provider of professional education and career development.
In addition to delivering more than 200 events annually for its members, investment professionals and the general public, NYSSA prepares hundreds of candidates to obtain the Chartered Financial Analyst(R) designation. With a membership of nearly 9,000, NYSSA is the largest CFA(R) society in North America and a founding member of CFA Institute.
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