من قبل
Fadi Chammas , Accounting & Finance Manager , Galler
One word to describe window dressing is Embellishment, actions taken to improve the appearance of a company's financial statements
areas where Management can window dress in a financial statement?
Cash. Postpone paying suppliers, so that the period-end cash balance appears higher than it should be.
Accounts receivable. Record an unusually low bad debt expense.
Fixed assets. Sell off those fixed assets with large amounts of accumulated depreciation associated with them, so the net book value of the remaining assets appears to indicate a relatively new cluster of assets.
Revenue. Offer customers an early shipment discount, thereby accelerating revenues from a future period into the current period.
Depreciation. Switch from accelerated to straight-line depreciation in order to reduce the amount of depreciation charged to expense in the current period.
Expenses. Withhold supplier expenses, so that they are recorded in a later period.