I noticed that too.
Say you have this basic build just to test Conflagrate damage: http://www.wowhead.com/?talent#IZZVf0qMhuVo
The damage modifiers are Aftermath ( +6% ), Inproved Immolate ( +30% ) and Emberstorm ( +15% )
Immolate base damage is 785, and it's spell power coefficient is 100%
Then cast a Conflagrate over an Immolated target. The damage output would be:
( 785 + SPValue * 1 ) * 1.06 * 1.30 * 1.15 * 0.8
If you add to the mix some sort of damage modifying aura, like Curse of Elements ( +13% spell damage received ) the damage output should be:
( 785 + SPValue * 1 ) * 1.06 * 1.30 * 1.15 * 1.13 * 0.8
However the actual damage output is higher than that theoretical damage, since the buff is applied twice:
( 785 + SPValue * 1 ) * 1.06 * 1.30 * 1.15 * 1.13 * 1.13 * 0.8
This bug can potentially increase damage done by Conflagrate by a huge amount, since the buffs stack twice and are applied multiplicatively.
There's another issue with the damage calculation of Conflagrate, according to some tests that players have made here. The buffs, glyphs and talents that affect Immolate damage should stack additively, then apply the rest of them multiplicatively.
So the Conflagrate damage should be:
( 785 + SPValue * 1 ) * ( 1 + 0.06 (Aftermath) + 0.30 (Improved Immolate) + 0.10 (Immolate Glyhp) ) * 1.15 (Emberstorm) * (any other auras) * 0.8