What is window dressing financial?

Financial managers can do certain things to increase or decrease the net income is recorded in the year. It is smoothing, smoothing of income or profit simply old window dressing. This is not the same as fraud or cookbooks.

Smoothing profits more is to push any amount of revenues and expenditures in other years they would normally be registered. Current profit smoothing technique is to delay the normal maintenance and repair.This is called maintenance différé.beaucoup routine and periodic maintenance of cars, trucks, machines, equipment and buildings may be delayed or deferred until at the latest.

A company that spends a significant amount of money for the training of employees and development can delay these programs until next year for the current year expenses are lower.

A company can cut spending for the exercise of its power for market research and product development.

A company can facilitate its rules regarding when customers paying slow are written large expenditures in bad debts and bad debts.The company can implement some of its costs of bad debts record until the year next statement.

An asset which is not actively used may have very little value current or future business.Instead of writing off the coast of one - depreciated cost of the asset impairment as a loss for the fiscal year, the company could delay radiation until next year.

Observe how the timing of certain expenses manipulating impact on net income make can can.Ce is not illegal even though companies can go too far in the numbers of massage, so that its financial statements are trompeuses.La most of the time however, smoothing profits not much of robbing Peter to pay Paul.Comptables consult these effects compensatoires.Les next year effects offset and cancel the effects of the cours.moins year fresh this year is balanced by cooler, the following year.