As of May 14, 2009, lawsuits to recover $10.1 billion in fictitious profits have been filed.

Kidder says that Mr. Jett created fictitious profits through an accounting loophole.

The Bookkeeping of Trillions As the later date neared, the report said, those fictitious profits would vanish from the books.

The report concluded that Joseph Jett, the 36-year-old head of Kidder's government bond-trading desk, acted alone and deliberately when he faked $350 million of fictitious profits.

He made his millions while fictitious profits were posted and investors lost billions.

In effect if not intention, the banks had been creating fictitious profits, much of which ultimately ended up as losses.

From 1977 through 1985, the total of losses and fictitious profits from the treasury operations was estimated at nearly $1 billion.

Ignoring opportunity costs and taxes paid on fictitious profits, half of Madoff's direct investors lost no money.

For 30 years, Parmalat's bosses have received public subsidies, disguised their accounts and announced fictitious profits.

Unpaid period costs are accrued expenses (liabilities) to avoid such costs (as expenses fictitiously incurred) to offset period revenues that would result in a fictitious profit.