Fantasy accounting: how the biggest companies in America turn real losses into paper profits
by Cory Doctorow from on (#1BQ1D)
Lax enforcement from the SEC has allowed the biggest companies in America -- 90 percent of the companies in the S&P 500, led by the faltering energy sector -- to ignore the "Generally Accepted Accounting Principles" (GAAP) in presenting their financial information to investors, manufacturing nonexistent profits in quarters where they suffer punishing losses. (more")