from the watch-the-tricky-accounting-at-work dept
Here’s a fun one if you’re looking for ways in which companies hide money. PeopleSoft has been using a shell company to hide the costs of developing their latest software suite. The company has only one employee, but still ate up $250 million of the cost of building PeopleSoft 8. It’s basically a way to hide the costs, so that PeopleSoft’s profit looks better. Yet another reminder to never trust accounting statements unless you really know what’s going on.