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 ?
The new accounting rules will make it more difficult for companies to repeat Lehman's aggressive accounting for repos.
Valeant's aggressive accounting tactics and practice of pushing up prices on newly acquired drugs has hurt the company, putting it into the crosshairs of other prominent investors.
These factors are used to develop aggressive accounting and governance risk (AGR) numbers, the final composite by which organizations are scored.
The resulting Aggressive Accounting and Governance Risk (AGR) score of each company is averaged over the past four quarters.
Last month, the Securities & Exchange Commission (SEC) announced a new task force that will be on the lookout for companies using aggressive accounting that might suggest financial reporting or accounting fraud.
Mr Osborne has sought to acknowledge the level of public outrage about multinational companies that deploy aggressive accounting strategies to lower their tax bills, in light of scandals over the likes of Starbucks' low UK tax bill.
The research firm said the company had adopted aggressive accounting practices to inflate earnings and return on equity.
In selecting short positions, the Fund seeks to identify securities with low earnings quality or aggressive accounting which may be intended on the part of company management to mask operational deterioration and bolster the reported earnings per share over a short time period.
As the site notes, some posts are simply quirky little factoids (like the fact that Warren Buffett's son relies on ConAgra for his health insurance) while others focus on more serious issues, like aggressive accounting, excessive compensation or the type of questionable self-dealing that can often be indicative of more serious problems at a company.
No amount of aggressive accounting will hide where the money has gone.
org, founded in 2003, reviews regulatory filings of companies and points out critical information, such as evidence of aggressive accounting, excessive compensation, or the type of questionable self-dealing that can indicate more serious problems at a company.
Rabin investigates whether auditors' attitudes towards creative accounting are associated with ethical judgement, their evaluation of the quality of financial reporting and their perceptions of factors that influence preparers of financial statements to use aggressive accounting techniques.