PalacioHill

jdane
note that CFAI is not calling it an aggressive accounting choice. It is saying that company has not been aggressive enough in writing down its inventory appropriately, and thus has more inventory on its books.
I think CFAI and Schweser (not that I use them this time round) are consistent. Aggressive accounting choice is something that makes current period earnings Higher.
This is on Page 252 of the curriculum - passage on the bottom of the page:
Conservative choice - makes current period INCOME LOWER.
Accelerated Depreciation, a lower salvage value - hence higher Depreciation expense, a lower discount rate on Pension plans - all increase expense, thus reduce income. These are Conservative choices. Higher allowance for Inventory obsolescence, higher allowances for doubtful accounts.
Aggressive choice - makes current period INCOME HIGHER.
Straight Line depreciation, higher salvage value, higher discount rate on pension plans - reduce periodic expenses, increase Earnings - these are Aggressive Choices.