This paper examines two principal categories of manipulative behaviour. The term
'macro-manipulation' is used to describe the lobbying of regulators to persuade
them to produce regulation that is more favourable to the interests of preparers.
'Micro-manipulation' describes the management of accounting figures to produce a
biased view at the entity level. Both categories of manipulation can be viewed as
attempts at creativity by financial statement preparers. The paper analyses two
cases of ...
This paper examines two principal categories of manipulative behaviour. The term
'macro-manipulation' is used to describe the lobbying of regulators to persuade
them to produce regulation that is more favourable to the interests of preparers.
'Micro-manipulation' describes the management of accounting figures to produce a
biased view at the entity level. Both categories of manipulation can be viewed as
attempts at creativity by financial statement preparers. The paper analyses two
cases of manipulation which are considered in an ethical context. The paper
concludes that the manipulations described in it can be regarded as morally
reprehensible. They are not fair to users, they involve an unjust exercise of
power, and they tend to weaken the authority of accounting regulators.
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