How investors can be fooled by provisions

In his second video in his ‘cooking the books’ series, Tim Bennett takes a look at how companies can manipulate what accountants call ‘provisions’ to create the profit profile they want investors to see. He also explains how you can avoid being fooled.

More from this series

How investors can be fooled by long-term contracts
How investors can be fooled by long-term assets


Video tutorial - why profit margins matter

Why profit margins are really useful

In this video, Ed Bowsher explains how to calculate a company’s profit margin, why it is the best way to evaluate profitability, and how you can use it when analysing a company.

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