stocker11: That was not the point he was trying to illustrate. He was illustrating the GAAP rule that says the media credits should have been booked for the value of the stock that was traded for them.
What we don't know, because we do not have the complete excerpt from his book, was how much emphasis he was placing on this accounting error having been done to defraud. He only alluded to it in his response to me:
All of the cases profiled in my book involve some formof accounting misstatement in the financial statements,meaning the accounting standards were violated. Iseparately deal with the issue of whether or notaccounting misstatements represent fraud(i.e. it may simply be an accounting error, unless thereis an intent to deceive, which makes it fraud).In JBI's case, there clearly was an accountingmisstatement, so it was a useful case to illustrate thespecialized accounting principles that apply to that area.The fact that all fraud-related allegations have not yetbeen resolved doesn't diminish the value of the examplethat JBI provides of the risks associated with theaccounting issue itself.
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