Creative Accounting in Financial Reporting
One of the great financial accounting challenges – creative accounting can be investigated from several perspectives: accounting, ethical, legal or psychological. The paper aims to achieve, based on a qualitative analysis, a synthesis over the perception of the creative accounting techniques from...
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| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Ovidius University Press
2025-02-01
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| Series: | Ovidius University Annals: Economic Sciences Series |
| Subjects: | |
| Online Access: | https://stec.univ-ovidius.ro/html/anale/RO/2024i2/Section%205/12.pdf |
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| Summary: | One of the great financial accounting challenges – creative accounting can be investigated from
several perspectives: accounting, ethical, legal or psychological. The paper aims to achieve, based
on a qualitative analysis, a synthesis over the perception of the creative accounting techniques from
an ethical perspective, but also to identify the possible motivations that can be the basis for these
techniques use by the managers and the professionals in the financial field. In general, creative
accounting is seen as a negative technique, as a method of manipulating financial statements, which
can negatively influence, in particular, the decision-making process and, in the long term, even the
company itself, but which can be limited by implementing some strict reporting standards,
independent audits, ethical education and by the use of innovative technologies. Among the identified
motivations, we found the desire of the management to reach the performance standards imposed by
the capital holders, obtaining capital under favourable conditions, reducing the tax bases, meeting
certain criteria necessary for listing on the stock market, covering some faulty management
decisions. |
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| ISSN: | 2393-3127 |