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:
>
NZ Farming Systems Uruguay Ltd – Annual Financial Statement
click for larger graphic
>
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 . . .
>
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
>
Hat tip Damien
Category: Legal, Regulation
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.
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?
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!
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.
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?”
That ain’t fudge, son.
Whoever “Said Creative Accounting is Dead?” Is a moron in denial.
The unemployment roll just increased by one.
Hmmmm does this mean cvienne is turning a profit on his farm this year?
Hmm, was that the rough draft that never should have seen the light of day?
That company’s entire budget rounds to zero.
[...] Barry Ritholz reports: [...]
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…
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.