Distorting, deceptive accounting with a particular emphasis on reporting profits that are not actually earned (a wide range of unscrupulous methods for making a company’s profits appear larger than they really are. These methods manipulate revenues by falsely boosting them, or costs by dishonestly lowering or concealing them. The term “voodoo” refers to the magical disappearance of such artificial profits once they have been discovered and once the true cost and revenue figures have been revealed). The voodoo method also includes the procedure of allocating losses to subsidiaries (group companies) within a group. This was common practice at the Texas oil company Enron, which went bankrupt in 2001 – and probably not only there. – See activity-shifting, balance sheet-determined, Anderson scandal, accounting, creative, factual design, loss camouflage.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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