Citron wrote, "Aggressive accounting
and fraud are two different animals.
Financial shenanigans, which aggressive accounting
and conservative accounting fall under, occur when an accountant tweaks or tampers with items on a company's financial statements to make the company seem more creditworthy or more attractive to potential investors.
We hardly worry the auditing firm used aggressive accounting
because the company is also a consulting client.
I tried to use my skills, passions, and background to improve financial reporting by pointing out aggressive accounting
in reports I read, endeavoring to do so with integrity, objectivity, due professional care, and a genuine interest in serving the public.
These findings suggest that tone at the top and corporate culture influence how individual managers perceive the appropriateness of engaging in aggressive accounting
practices such as earnings management.
Carillion was From unsustainable." Explaining how Carillion misled investors, the MPs said: "Carillion used aggressive accounting
policies to present a rosy picture to the markets.
"Carillion used aggressive accounting
policies to present a rosy picture to the markets." Maintaining stated contract margins in the face of evidence that showed they were "optimistic", and accounting for revenue for work that not even been agreed, enabled it to maintain apparently healthy revenue flows.
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.
According to Forbes, the list is based on accounting and governance behaviours - 'Aggressive Accounting
and Governance Risk' (AGR) - retrieved by MSCI ESG Research.
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.
We believe a structural de-rating is likely because the quality of earnings and return on equity reported is being driven more by corporate book and aggressive accounting