creative accounting
Definition
Use of unorthodox 'massage parlor' techniques which, while following provisions of GAAP, paint a desired (negative or positive, as the case may be) picture of a firm's finances. For example, selling an asset (whose market value is high but book value is low) to create non-operating profit that offsets operating loss. Unlike cooking the books, creative accounting is generally legal. Euphemistically also called financial engineering or earnings management. See also creative financing.
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creative accounting is in the Accounting & Auditing, Banking, Commerce & Finance, Corporate, Commercial, & General Law and Entrepreneurship, Management, & Leadership subjects.
creative accounting appears in the definitions of the following terms: financial engineering, generally accepted accounting principles (GAAP), cooking the books, massaging the figures, extraordinary item and price to sales (PS) ratio
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