Accountants and financial analysts use a lot of abbreviations. EBITDA – for example means “Earnings before Interest, tax, depreciation and amortisation” and is key measure for company profits. However some of these can have other definitions – and when you analyse company financials it is always worth keeping at the back of your mind that a company publishes finances to make them look good as well as comply with legal filing obligations. They are supposed to be an honest truthful record of company performance but there are still ways to make the company look good. In some cases the accounts can make a company look better than it actually is. And here comes the humor. During interviews with some of the fraudster we have collected the dumbest of all answers about financial definitions. Enjoy
|
Abbreviation
|
Revised Definition
|
Traditional Definition
|
|---|---|---|
| EBITDA | Earnings, before I tricked the dumb auditor | Earnings before interest, tax, depreciation & amortisation (A key measure of profitability) |
| EBIT | Earnings, before irregularities and tampering | Earnings before interest & tax (Operating profit) |
| CEO | Chief embezzlement officer | Chief executive officer |
| CFO | Corporate fraud officer | Chief financial officer |
| IFRS | Incredibly fraudulent revenue streams | International Financial Reporting Standards |
| FRS | Fantasy reporting standards | Financial Reporting Standards |
| GAAP | Generally abused accounting principles | Generally Accepted Accounting Principles |
| P/E | Parole entitlement | Price per share / Earnings per share |
| EPS | Eventual prison sentence | Earnings per share |
| SWOT | Substantive Waste Of Time | Strengths, Weaknesses, Opportunities & Threats (A well known business analysis technique) |
