misrepresented financial statements
[ˌmɪsˌrɛprɪˈzɛntɪd faɪˈnænʃəl ˈsteɪtmənts]
noun phrasepl: misrepresented financial statements
demonstrações financeiras distorcidas
1. Financial statements that contain false, misleading, or inaccurate information presented intentionally or unintentionally to deceive stakeholders or regulatory bodies
The company faced legal consequences for misrepresented financial statements that overstated profits by 40%.
A empresa enfrentou consequências legais por demonstrações financeiras distorcidas que superestimaram os lucros em 40%.
2. Financial records that fail to present a fair and accurate view of a company's financial position, performance, or cash flows
Auditors discovered misrepresented financial statements during their annual review of the corporation.
Os auditores descobriram demonstrações financeiras distorcidas durante sua revisão anual da corporação.
3. Accounting documents that violate generally accepted accounting principles (GAAP) or International Financial Reporting Standards (IFRS)
The investigation revealed misrepresented financial statements that violated multiple accounting standards.
A investigação revelou demonstrações financeiras distorcidas que violaram múltiplos padrões contábeis.
In both Brazilian and American business contexts, misrepresented financial statements are serious legal matters that can result in criminal prosecution, substantial fines, and imprisonment. In Brazil, this falls under the jurisdiction of the CVM (Comissão de Valores Mobiliários) and can violate the Lei das Sociedades Anônimas. In the USA, the SEC and Department of Justice actively pursue such cases. The Sarbanes-Oxley Act (2002) significantly increased penalties for financial statement fraud in America, reflecting increased corporate accountability post-Enron scandal. Both countries view this as a violation of stakeholder trust and market integrity.
NYC Slang
cooked books (informal); doctored financials
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