Who Said Creative Accounting Is Dead ?
By Barry Ritholtz - August 31st, 2009, 10:15AM
It appears that NZ Farming (NZX) ran into a little trouble with the regulators when they accidentally included the suggestion of “fudging depreciation” in their account statement:
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NZ Farming Systems Uruguay Ltd – Annual Financial Statement
click for larger graphic
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I am not at all familiar with the company, but I do seem to think that this sort of accounting term is discouraged in public entities . . .
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Note: The Company responds here:
NZ Farming Systems Uruguay Ltd – Annual Financial Statement
http://www.nzx.com/markets/NZSX/NZS/announcements/2806777/NZ-Farming-Systems-Uruguay-Ltd-Annual-Financial-Statement
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Hat tip Damien
August 31st, 2009 at 10:16 am
financial innovation = euphemism for financial fraud.
creative accounting = euphemism for accounting fraud.
But if everyone’s happy defrauding each other in this country, then what’s the problem, right?
August 31st, 2009 at 10:25 am
Hilarious!! Who would think there was fraud in the corned beef business?
It’s much the same at the IBs, but they pay their proof readers better!
August 31st, 2009 at 10:31 am
Why anyone at this point trades or invests in any publicly-traded company based on the belief that they’re telling the truth with their financial statements is beyond me. They can just lie with impunity, so why not do it? It’s OPM. They don’t need to tell the truth. Same with our gov’t.
August 31st, 2009 at 11:00 am
FASB… another excellent example of “Self-regulation” the wingnuts want.
“Hey Dad, can I have the car tonight?”
“Sure son …and you decide what’s right, OK?”
August 31st, 2009 at 11:10 am
That ain’t fudge, son.
August 31st, 2009 at 11:28 am
Whoever “Said Creative Accounting is Dead?” Is a moron in denial.
August 31st, 2009 at 11:29 am
The unemployment roll just increased by one.
August 31st, 2009 at 12:09 pm
Hmmmm does this mean cvienne is turning a profit on his farm this year?
August 31st, 2009 at 12:32 pm
Hmm, was that the rough draft that never should have seen the light of day?
August 31st, 2009 at 12:48 pm
That company’s entire budget rounds to zero.
August 31st, 2009 at 1:37 pm
[...] Barry Ritholz reports: [...]
August 31st, 2009 at 4:07 pm
2009 depreciation = 2.4 Mil, Incriminating marginalia in the annual report, priceless.
Man, someone really must have had a brown trouser moment moment when this came out, now lets see if SOX has some teeth…
August 31st, 2009 at 7:19 pm
Classic. I’m from New Zealand and NZF is on my watch list. The company is trying to replicate pastoral dairy farming as it is done in New Zealand in Uruguay. Arbitraging cheaper labor and land prices. It works well in New Zealand but was something that evolved over a long period.
Agriculture is supposed to be a good bet going forward but any company needs to be managed by people with integrity. I can tell you “fudge it” means make it look better than it is. And it means that here just as it does anywhere that common English is spoken.