Profits You Can Trust demystifies global financial reporting for managers, board members, lenders, audit partners, analysts, and investors alike.Long before the Enron implosion, H. David Sherman and S.David Young exposed the techniques of dishonest financial reporting in a much-discussed Harvard Business Review article. In this book, they expand upon those ideas to present a complete framework for accurate financial reporting. Along with author Harris Collingwood, they systematically identify areas of unacceptable risk, and offer detailed guidance on both reporting strategy and communication.Every chapter is illuminated with non-technical, easy-to-understand examples. You’ll find specific questions to ask—-and actions to take—-to enhance your firm’s financial credibility, strengthen your personal financial literacy, and avoid detonating the accounting landmines that can destroy your business or your investments.complete framework for trust in corporate reporting: Systematically identifying real profits—and eliminating "fake" ones Sins of omission: What companies don’t tell you about risk Good will hunting: How to tell hard assets from hot air The mismeasure of business: The use—and misuse—of performance comparisons and benchmarks The fine art of revenue recognition: What is a sale? When do you book it? Don’t like the numbers? Make up new ones: Watching out for EBITDA, pro forma earnings, and "Stupid Cash Tricks"