Accounting risks have evolved with governance reforms and excess liquidity. Investors should watch for earnings manipulation, low cash conversion, and high related-party transactions in IPOs. Many companies show strong pre-listing growth but weak post-listing performance. Warning signs include aggressive revenue recognition, extended credit periods, and high contingent liabilities. Scrutinizing financials is crucial before investing. Accounting risks have evolved with governance reforms and excess liquidity. Investors should watch for earnings manipulation, low cash conversion, and high related-party transactions in IPOs. Many companies show strong pre-listing growth but weak post-listing performance. Warning signs include aggressive revenue recognition, extended credit periods, and high contingent liabilities. Scrutinizing financials is crucial before investing. Economic Times
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