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.

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Comments on “PeopleShell”

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Anonymous Coward says:

I wonder...

If they’ll go down the shitter like enron (who’s accounting firm used shell companies to hind the actual situation from stockholders).

At the moment they’re completely overvalued at ~$40

not very impressive for a company attempting to bill themselves with SAP, Oracle and other *real* heavy hitters.

sb says:

Re: I wonder...

no one needs this overpriced software in a recession. these firms are WAY overbloated. i just hope they made smart liscening deals, b/c NEW imstallations of this stuff will plummet. just see fate of big6 firms, massive drops , and cutbacks. this is what they specialize in, ,,big giant overpriced overblown, high risk projects…..goodbye…bull economy is over.

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