Creative Accounting

The art of faking the balance sheet

• David

• Bertolus

• Lignon

• Ledouble

The art of saving money

• Gounin

• Lignon

• Ledouble

• Bertolus

What is not the main motives for applying creative accounting?

• Competition

• Attracting investors

• Obtaining personal gain

• To report on financial information about the performance

The most widely used creative accounting techniques are

• Manipulation of off-balance sheet financing items

• Continuously making employees aware of the code of ethics

• Obtaining personal gain

Efficient techniques for preventing creative accounting include

• The art of calculating the balance sheet

• Buying time for not settling debts

• Making investors aware of the practice of manipulating financial information

What is the negative effect of creating accounting?

• Consistent enforcement of penalties by national authorities

• Quality of financial reporting, especially with regard profit manipulation

• Establishing effective corporate governance control

Creative accounting can be refer as

• Forensic accounting

• Internal and external audit

• Innovative accounting, aggressive accounting, window dressing