In: Accounting
Aggressive accounting is that practice of business accounting where certain misstatements are incurred while making the balance sheets and other financial statements. The purpose of such doings is to present the working of company more economically stable and sound.
Egregious accounting where fraud is being committed in retailing and accounting fraud to mislead the investors and loan providers and Banks / Financial Institutions. The smart fraudsters are commonly known are mining, oil & gas, pharma, etc. The fraud is being committed intentionally.
Yes, Biovail accounting case of “Biovail Corporation” is a case of egregious accounting as:
1) The reports generated by the Canada’s largest public traded pharmaceutical companies are manipulated towards the Sales.
2) The "Revenue recognition" is being observed at FOB sales accounting. The Sales Revenues are inflated and COGS is booked at lower level.
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