Unmasking Cookie Jar Reserves Accounting: Detect & Prevent Earnings Manipulation
Cookie Jar Reserves Accounting: Unveiling the Deception Cookie jar accounting, while sounding innocuous, is a serious form of financial manipulation. It involves a company secretly setting aside excess profits during prosperous periods only to release them later to artificially inflate earnings during leaner times. This practice creates a false impression of consistent financial performance, misleading investors and regulators. It's a subtle but damaging form of earnings management, masking underlying vulnerabilities and hindering accurate financial assessment....