At our meeting yesterday you asked me to send you some background info on creative accounting, and in particular off-balance-sheet accounting.
Basically there's quite a bit of flexibility in the way we can interpret the standards and principles of accounting. For example,we may want to report bigger profits so that we can attract inverstors on the capital markets.On the other hand,smaller profits may be better so that we pay less tax. The problem is that the line between truthful and misleading representation of figures is sometimes very thin,and this is where people get into trouble.