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Fighting The Enemy Of Fair View Principle – Getting To Know Creative Accounting

Author

Listed:
  • Rucsandra Livia Moldovan

    (Babes-Bolyai University, Faculty of Economics and Business Administration Cluj-Napoca, Romania)

  • Sorin Adrian Achim

    (Babes-Bolyai University, Faculty of Economics and Business Administration Cluj-Napoca, Romania)

  • Cristina Bota-Avram

    (Babes-Bolyai University, Faculty of Economics and Business Administration Cluj-Napoca, Romania)

Abstract

In this paper, we aim to discuss the role of creative accounting as a technique of accounts manipulation in contrast with the fundamental principle of accounting – fair view presentation, and the ethics of the accounting profession. In order to do so, we review the opinions of various authors on the subject while contrasting both fraud and professional ethics with creative accounting, and explaining the inverse causal relationship that arises between creative accounting and fair view principle. Fur-ther on, we determine what the role of auditors and corporate governance is in winning the fight over this kind of accounting practices. The study of previous literature is meant to be the basis for some possible comprehensive solutions we put forward that, from the point of view of accounts manipula-tion, would help achieve the transparency and trustworthiness that financial reporting deserves. When we propose these solutions, our main focus is on Romania. However, by extension, they could be ap-plied anywhere else.

Suggested Citation

  • Rucsandra Livia Moldovan & Sorin Adrian Achim & Cristina Bota-Avram, 2010. "Fighting The Enemy Of Fair View Principle – Getting To Know Creative Accounting," Analele Stiintifice ale Universitatii "Alexandru Ioan Cuza" din Iasi - Stiinte Economice (1954-2015), Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 2010, pages 51-62, july.
    • Handle: RePEc:aic:journl:y:2010:v:se:p:51-62
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    Citations

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    Cited by:

    1. Piosik Andrzej & Strojek-Filus Marzena, 2013. "An Assessment of the Application of Earnings Management Objectives and Instruments in Financial Reporting – Evidence of Survey Research Results," Scientific Annals of Economics and Business, Sciendo, vol. 60(2), pages 1-26, December.
    2. Ikhlas Hentati-Klila & Saida Dammak-Barkallah & Habib Affes, 2017. "Do auditors’ perceptions actually help fight against fraudulent practices? Evidence from Tunisia," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 21(3), pages 715-735, September.

    More about this item

    Keywords

    creative accounting; accounts manipulation; true and fair view; professional ethics;
    All these keywords.

    JEL classification:

    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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