Abstract:
Standard GAAP accrual accounting protocols can contain misleading (and even fraudulent) information because of certain long-acknowledged interpretations required in constructing financial statements. The occurrence of defaults and bankruptcies in recent years has become a serious problem for regulators, investors, lenders and creditors. This poster reviews an alternative document - the statement of cash flows - that inherently is less prone to manipulation and misinterpretation. The research suggested is to compare various failed company profit and loss results just prior to the incident, to the cash flow statement results for the same period.
