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)