Wednesday, June 10, 2009

Yellow Journalism at its Best

"Satyam Posts Rs. 181 Crore Profit" screams the headline of Indian newspapers.
"Wow!", you say.
You read the first paragraph and go to the next news item.

The third paragraph tells you the correct story

However, the Satyam management in its filing has cautioned thatthe results are based on information available in the company's management information system [yes the same one which Raju ran all these years] and not necessarily in compliance with generally accepted accounting principles, It informed that "in absence of proper records a lot of information has been derived on the basis on assumptions. In other words, the information may prove to be incorrect after Satyam's incomes are restated by the two auditing companies that are on the job presently.

This is sensationalism at its best.

By the way, read my previous post on assumptions. Some coincidence.

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