It's About Liberty: A Conservative Forum
Topics => Economy => Topic started by: Libertas on October 14, 2011, 08:08:25 AM
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You can have a lot of fun with statistics, maybe too much fun.
While this is not a pure predictor of crooked accounting, it does indicate there might be an uptick in the probabilities indicating some book cooking is going on. Without raw financial data for a bunch of companies though it is impossible to know if the cooking is real or implied. Take a look through some of our arcane accounting rules (the "skin in the game" treatment is one that comes to mind when accounting for cooperative ventures) can inflate balance sheets because it is mandatory to do so. Separating the wheat from the chaff could be hard here, but the increasing trend line seems to be indicating something...
http://www.zerohedge.com/news/book-cooking-index-soars-all-time-highs (http://www.zerohedge.com/news/book-cooking-index-soars-all-time-highs)