Forensic Accounting & Corporate Fraud Glossary
A comprehensive reference glossary defining technical accounting standards, legal terms, and enforcement mechanisms used across the Corporate Fraud Library.
- Topic: Forensic Accounting & Corporate Fraud Glossary
- Category: Terminology Reference
- Summary: A comprehensive reference glossary defining technical accounting standards, legal terms, and enforcement mechanisms used across the Corporate Fraud Library.
ASC 606 (Revenue from Contracts with Customers)
The core GAAP accounting standard establishing the five-step model for recognizing revenue when performance obligations are satisfied and control transfers to the buyer.
Bill and Hold
A practice where an entity bills a customer for goods that the entity continues to hold in its physical custody. Legitimate only under narrow commercial criteria requested by the customer.
Channel Stuffing
Inducing downstream distributors to accept unneeded inventory ahead of real retail demand through undisclosed return rights, deep discounts, or extended payment terms.
Cookie-Jar Reserves
Over-accruing liabilities or loss provisions in profitable quarters to build a reserve cushion that can be reversed into earnings in subsequent periods.
Level 3 Assets
Financial assets valued using unobservable inputs and internal pricing models rather than observable market quotes, making them vulnerable to subjective mark-to-model abuse.
Section 13(b)(2) (Books and Records & Internal Controls)
Statutory provisions of the Securities Exchange Act of 1934 requiring public issuers to keep accurate financial records and maintain sufficient systems of internal accounting controls.