Aggressive Accounting

Aggressive Accounting

The practice of incorrectly recognizing revenue in order to please investors. Aggressive accounting seeks to falsely inflate stock prices by improperly reporting income, failing to capitalize expenses, hiding losses in subsidiaries, or otherwise misrepresenting the company's financial state. In the early 2000s, aggressive accounting came into focus in the United States when it was revealed that Enron and several other companies were using the practice. See also: Sarbanes-Oxley Act of 2002.
References in periodicals archive ?
Hillman has been deemed by Bally's Audit Committee to have created a "culture that encouraged aggressive accounting," which ultimately led to the Company's financial restatements issued on November 30, 2005.
In February and May 2013, Barron's questioned Linn's aggressive accounting practices.
The aggressive accounting measures identified by AIG and historical unique governance have resulted in concerns over internal controls.
However, in two articles published in February 2013 (just prior to the announcement of the transaction with Berry) and in May 2013, Barron's questioned Linn's aggressive accounting practices.
heightens the risk of internal control breakdowns, potentially aggressive accounting, and restatement risk;
Avoids Stocks With Aggressive Accounting, Owns Stocks With High Quality Earnings
Investigation finds both responsible for multiple accounting errors and for creating a culture of aggressive accounting.
Footnoted's research staff pores over hundreds of SEC filings a day to unearth critical information buried in the fine print, such as evidence of aggressive accounting, excessive compensation, or the type of questionable self-dealing that can indicate more serious problems at a company.
The total accrual scoring system, called the Advisen Total Accrual Measure (ATACm), leverages recent academic research into aggressive accounting practices and applies it specifically to the D&O insurance markets for the first time.
NEW YORK -- 172 Basis Point Spread Differential Established Between Issuers With Most and Least Aggressive Accounting
CFRA rates quality-of-earnings at public companies, warning investors, creditors and other stakeholders about companies displaying deteriorating operational indicators or employing unusual or aggressive accounting practices, and reporting favorably on public companies with strong operational health and appropriate accounting policies.
Analysts review whether a company has instituted major changes in accounting procedures, overuses "one-time" charges, or applies aggressive accounting methods, among other practices.