
102: Eugene Soltes – Unraveling a $65-Billion Ponzi Scheme and Notorious Cases of Insider Trading
Chat With Traders
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The Complexity of Accounting
There's a lot of managerial discretion involved if you actually ask a class of lawyers They will actually say you need to reserve the amount that's reasonable. The trick is if you pick the 25 million because you've shopped around for a different estimate You're able to meet your earnings estimates. If anything stock price is gonna go up But the only reason why you've managed to hit those expectations is because you shoppedaround for the kind of estimate that Kind of works well for you in that instance.That's pure manual to score discretion. That's allowed under accounting That's not actually something we would say is manipulate it but in a way you could say it's certainly Earnings Management.
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