How Do Large Companies Account for Bribes in Their Financial Statements?

This is certainly an issue we all might be interested in! Now, given the fact that bribes are not legal, how do you think companies could hide the bribes they take? Or do you imagine that they do not take at all (chuckles)?

Certainly the other thing mentioned is one of the thing you will not believe (neither us).

A lot has to be kept in mind while hiding them.

Most often they are hidden in statements that are either overlooked or ignored. They are very properly arranged so that it does not grab attention.

Consider the following situations:

  • Unusual high billing amount against Stationary expenses for a company. (Possibly how much can you need to write?)
  • A lengthy fat bill for cartridge refilling pertaining to variety of printers that the company have.
  • Now, every company has allowances that are made like bonus. Here, the statements made in such a way that the bribes look totally clean.
  • Every company keeps some amount aside for promotional purposes. It is this where companies could play with numbers conveniently and make the financial statements appear to be fine.
  • Also, companies have provisions made in their budget where they have complimentary gifts, stays in hotels, visits, dining which is use very conveniently used and effective to hide bribes to a great extent.
  • The purchases made from local dealers and retailers are something that is mostly overlooked while checking. Nobody puts much effort to know about details concerning the negligible purchases. These are ideal places to hide small or moderate bribes for own benefits.

Shocked? Don’t be!

This is surely not happening only in the contemporary period. This had been the way for centuries!

To read more such interesting matters you can visit, “What should everyone know about accounting? “for your interest and benefit.

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