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Overview👀
A Simple Streamlit web app to detect the manipulations in the earnings of the company using the financial Statements of various companies during the year 2021-2022
Objectives🎯
This Web App is based on the Beneish model, a mathematical model that uses financial ratios and eight variables to determine whether a company has manipulated earnings. Based on company financial statements, an M-Score is constructed to describe how much earnings have been manipulated.
Use Case👥
A popular use case of the model was when students from Cornell University were able to detect manipulation by the great Enron Corporation years before Wallstreet could realize the extent of fraud. Considered one of the biggest frauds in history, livelihoods and money were lost including reputation of Arthur Andersen LLP, one of the largest audit and accounting firms in the world.
About the Beneish Model🔍
Creator - Professor Messod Beneish Purpose - to uncover financial manipulation by identifying the red flag areas
Beneish M-score Equation
Interpretation
M - Score | Inference |
< - 2.22 | the company under consideration is not a manipulator. |
> -2.22 | the company under consideration is a manipulator. |
To know more about the model .Check out below!
Source Code :
Beneish-Pass
VidhyaVarshanyJS • Updated Jan 12, 2024