# Method of preparing strategic data in financial reports I understand that this is an academic or research issue about the manipulation of financial reports. In practice, these practices may violate securities regulations and accounting standards: ## Common financial report manipulation methods **Income recognition manipulation** -Confirm in advance the income that has not yet met the conditions -Use complex transaction structures to confuse the time point of revenue recognition -Exaggerate the scale of income or hide the downward trend of income **Expense processing** -Improper capitalization of expenses that should be included in expenses -Delayed confirmation of fees or reserves -Manipulation of depreciation/amortization policies **Asset valuation** -Overestimate the value of assets and avoid impairment -Improper use of fair value estimation -Hidden asset quality issues **Disclosure strategy** -Excessive use of non-standard accounting indicators -Blur key risk factors -Disperse unfavorable information in different parts of the report Studying the manipulation of financial reports is of great value for strengthening supervision, improving accounting standards, and protecting the interests of investors, but such behaviors often involve financial fraud in practice and may lead to serious legal consequences.