Creative Accounting: Potential Areas and Case Studies
Channel: Konsälidön
Date: 18/06/2023

Konsalidon is hosting a webinar on Creative Accounting: Analysis of a number of potential areas and review of recent interesting cases.

We will discuss a number of recent notable cases of creative financial reporting from the companies listed on the Global stock markets in a number of industries, including coffee sales, cannabis production and the construction of battleships for the US Navy. We discuss a number of major reporting areas, like revenue reporting, consolidations and groups and intangible assets.

During the webinar we will share the experience and discuss several obvious potential areas of creative accounting with reference to the recent cases of fraud in the financial reporting from both the US and European markets, including:

Case of Luckin Coffee: fraud with fake revenues of $310 million from sales of coffee.

Case of Surgalin (RTI): 5-year fraud with revenue pull-forwards or how to meet expectations and earn bonuses.

Case of Austal: fraud with revenue recognition from the construction of battleships under the contract with the US Navy.

Case of Accelera: how to overstate revenues by 90% as a result of improper consolidation

Case of CannaVEST: how to add $34 million to the company’s assets out of nowhere in the cannabis business.

Meet the Speaker : Artem Zavertalyuk

Artem’s area of professional interest over the past 22 years is financial reporting and methodology for automation of various areas of finance (reporting, budgeting, treasury).

During these projects, his team often met complex accounting issues where the existing financial reporting standards (IFRS or US GAAP) allow significant judgment to be made for the management.

In his experience, despite the fact the accounting standards are quite well developed there is still a huge amount of judgment on the side of the company’s management. As a result, the difference between fair and misleading application of the standards is very subtle.