Please read our disclosure at the end of this entry. All figures in CAD unless noted otherwise.
This is our second in a series of entries on CGI Group, Inc. (GIB). We remain short CGI stock.
In this entry, we show how acquisition accounting can be used to manipulate earnings. We also explain how CGI re-marked the assets and liabilities of Logica PLC in accounting related to the acquisition, and we discuss what the re-marking implies about Logica's historical profitability.
Readers should begin with our first entry on CGI, in which we introduce the Logica acquisition and the concept of "cookie jar" accounting. We also suggest that investors read a recent article about CGI's accounting in...
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