Introduction to Forensic Accounting | How Companies Manipulate Profits | Accounting Frauds in India

🤝 Download the PowerUp Money app to select mutual funds intelligently & review your portfolio in minutes https://app.powerup.money/xDsX/shanka... 🤝 Join Stockscans for powerful stock analysis, smart market scans & real-time insights Use code SHANKAR15 for a 15% discount on the price https://www.stockscans.in/pricing?ref... ⭑ Join 60,000+ investors who read my newsletter regularly Subscribe at https://shankarnath.substack.com/ Download or Subscribe to Fisdom's CAPVIEW 👉 https://www.fisdom.com/research/suit-... In this video, I shall be introducing you to the world of forensic accounting and the research here is inspired by "Financial Shenanigans" - Howard Schilit's renowned book. I have made it more recent with Indian examples of companies that have manipulated their revenues, expenses and therefore their profits and how an investor can detect these accounting frauds and avoid such unscrupulous companies Specifically, we'll be looking at 5 major manipulations: 1. Accounting Policy Changes: We'll look at how Byju's was pulled up by their auditors and forced to make changes to their revenue recognition policy 2. Channel stuffing: We'll look at the paints industry and how using receivables data we examine how the pumping-of-volumes can be detected 3. Fictitious revenue: The case of Urja Global and Zacobite comes to light here wherein the company created something out of thin air 4. Shifting expenses to a different period: We see how using something like changing an asset's life duration, a company can reduce depreciation to boost up the profits 5. Capitalize expenses as assets: This certainly defies accounting principles and Globus Spirits Limited did this a few years back by capitalizing advertising & promotional expenses and inflating their profits by a significant margin 👉 Download the Fisdom app: https://fisdom.onelink.me/VCH6/Shanka... 👉 Video Chapters: 00:00 Financial Shenanigans 01:35 Companies I am Cautious Of 03:31 Manipulation of Accounts 05:28 1. Accounting Policy Changes 07:45 2. Channel Stuffing 09:12 3. Bogus Revenue 12:11 4. Shifting Expenses to Different Time Period 14:43 5. Capitalizing Operating Expenses to Balance Sheet 17:06 Shankar's Viewpoint 👉 Additional Reading material: ‣ Financial Shenanigans by Howard Schilit (book link): https://amzn.to/3RR6Ycb ‣ Luckin Coffee Fraud:    • Luckin Coffee Scam Revealed: How They Got ...   #forensicaccounting #accountingfrauds #financialshenanigans Disclaimer: I am not a SEBI registered investment advisor or research analyst. I am not registered with PFRDA or IRDA either. The content posted on this platform is purely for educational purposes and none of it constitutes investing or trading advice. Viewers should do their own research and diligence before investing or acting on the information presented. Some of the links I have posted in the video, the description, the comments and other related resources might be affiliate links