We investigate for a positive relation between growth and the aggressiveness of accounting choices. The motivation is … that this relation is an unexamined and very general implication from most existing theories and types of accounting choice … ability to increase income because an “aggressive” accounting choice will only increase earnings for growing firms and will …

accounting provide investors with sufficient information for equity valuation purposes. Under alternative accounting rules …, including historical cost and value in use accounting, investors will generally not be able to value precisely a firm's growth … options and, therefore, its equity. For these accounting rules, we describe the range of valuations that is consistent with …