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IASB’s Financial Presentation Project: The EV/Equity Value Financial Analysis Problem
In 2019, the IASB issued an Exposure Draft: General Presentation and Disclosures in which the board laid out its proposals for a reorganisation particularly of the profit & loss statement…
Was ich für mein kleines Kneipen-Business gelernt habe – The Wirecard Story so far (6)
Vorwort: Dieser Text ist eine bewusst abstrakt gehaltene, vereinfachte Darstellung der jüngsten Nachrichten und Pressemitteilungen. Er deckt sich in wesentlichen Punkten nicht notwendigerweise mit…
Lessons from the Scandal: Three Weaknesses of IFRS – The Wirecard Story so far (5)
The Wirecard case provides a lot of lessons for analysts and investors. However, one aspect has not been discussed a lot so far. The question: Did all this happen despite our well-functioning…
Wirecard’s low Tax Rates as a Warning Sign? The Wirecard Story so far (4)
This problem can really bring a dishonest manager’s decision making process to a breaking point: Overstating revenues (and hence earnings) is one thing, but if you want to draw a complete and…
Gross Revenue Accounting – Audit is not Audit is not Audit! The Wirecard Story so far (3)
During the last days we got a lot of questions about what EY could have seen and what is beyond the detection horizon of regular auditors. This is why we want to shed some more light on Wirecard’s…
KPMG’s Special Investigation Report: The Wirecard-Story so far (2)
There is an old saying in financial statement analysis: A good balance sheet is mostly even better, and a bad balance sheet is mostly even worse in reality. The reason for this observation is that…
Wirecard’s Thrilla in Manila: The Story so far (1)
Thursday, 18 June 2020, marked the preliminary peak of the story of Wirecard, the German DAX-listed payment processing company. That day, auditing company Ernst & Young refused to sign-off the…
Coronavirus: Beware of the Hidden Fixed Costs in Inventory Accounting
It is not a big secret that fixed costs are the real ugly thing for companies in crisis. While leading to rather good effects in times of growing revenues it turns to the bad once revenues decline:…
Coronavirus: How did Conti manage to pass Q1-Reporting without Goodwill Impairments?
Continental AG (Conti) did not show any goodwill impairments in Q1/2020 (only some minor asset impairmets). However, in contrast to this, the big German automobile supplier popped-up top of our…
Coronavirus: Q1-Reporting: Wild Loss Reluctance but only mild Cookie Jarring
Times of crisis always bring out two distinct kinds of bad accounting behavior (along with a lot of good accounting behavior, of course) – one of them is obvious, the other one rather not so. The…