In financial reporting, companies may use strategic methods to create numbers that mislead investors and regulators. Although such behavior is unethical and potentially illegal, here are some common tactics: 1. **Revenue manipulation**: Companies may overstate revenue by recognizing revenue early, delaying order cancellations, or double-counting sales. 2. **Expense deferral**: Delaying expenses that should be recognized in the current period to future financial periods in order to show higher profits in the current period. 3. **Asset overvaluation**: Inflating asset values through unrealistic valuation methods and underestimating depreciation/amortization costs to improve financial performance. 4. **Liability undervaluation**: Hiding or delaying the recognition of liabilities, or removing liabilities from the balance sheet by setting up special purpose entities (SPEs). 5. **Cash flow manipulation**: Using financial means or structured transactions to make operating cash flow appear strong. 6. **Related-party transaction manipulation**: Manipulating revenue and expenses through transactions between related parties, such as buying and selling assets at unreasonable prices. 7. **Non-recurring item manipulation**: Adjusting net profit during the reporting period through restructuring expenses, liquidation income and other items to manage and manipulate market expectations. 8. **Providing inadequate or misleading notes**: Providing incomplete or misleading information in the notes to financial reports, making it impossible for investors and analysts to fully understand the financial situation. Such behavior may result in serious legal consequences, including fines, lawsuits, and even criminal liability. Transparency and integrity are essential to maintaining investor trust and the normal functioning of the market. Regulators in various countries usually establish strict rules and audit standards to prevent and detect such misleading behavior.