With earnings season just around the corner, the WSJ reports on a recent survey of CFOs which...


With earnings season just around the corner, the WSJ reports on a recent survey of CFOs which found that they reckon 20% of companies use legal accounting methods to report earnings that don't fully reflect firms' underlying ops, with the magnitude of the misrepresentation 10% of EPS. Red flags include earnings that don't correlate with cash flows, sudden changes in reserves, and large and frequent one-off items.

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