Aggressive Accounting What It Is And Examples Thereof

Aggressive accounting includes the methods by which accountants will push the principles established by the Financial Accounting Standards Board to their limits without actually breaking them in order to maximize assets and minimize liabilities. The problem with discerning the issue of aggressive accounting is the attitude against any immorality even existing. Many think that because the companies are not actually breaking the rules, it can easily be questioned why it would be deemed unethical. People claim that if they were unethical, GAAP (Generally Accepted Accounting Principles) would establish rules prohibiting the many different practices. This thesis is an empirical investigation of aggressive accounting as practiced in the United States. By examining the issue of aggressive accounting, we are able to then come to a conclusion on the matter of whether such "bending" of the rules is in fact unethical, or simply another aspect of business strategy.