... to choose from a selection of equally acceptable accounting methods, each of which can often give very different results. Hence, differences in reported results often stem from the different accounting procedures used, rather than differences in performance. It could be suggested that Wormald, because of the availability of different accounting methods, was able to produce what it saw as a desirable result. In other words, the profits may have been manipulated by the choice of suitable accounting methods and amounts disclosed. `Choosing accounting procedures to satisfy management's objectives is sometimes referred to as creative accounting; unfortunately, this often leads to a lack of comparability in accounting reports' (Poole, 1987, pp. 42-48). Such an example of this can be seen in Wormald's treatment of the abnormal items, doubtful debts and write-downs; inclusion would only have increased the liabilities of the firm, which in turn would have produced an even higher loss. One reason ...

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