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Critical Examination of the Impact Accounting Ethics and Creative Accounting on the Financial Statements

Author

Listed:
  • Adel M. Qatawneh
  • Atala M. Alqtish

Abstract

This study aimed to determine the impact accounting ethics and creative accounting on the financial statements in Jordan, the study importance arises from the need to recognize creative accounting and profession ethics for accountants, creative accounting can be used to manage profits, income smoothing. Earnings management occurs when accountants use judgment in financial statements and in structuring transactions to alter financial statements to either mislead some shareholders about the underlying performance of a company, sometimes to impact contractual outcomes that depend on financial reporting. To achieve the objectives of this study a questionnaire designed and distributed to the society of tax auditors and mathematical model built to link between creative accounting and accounting ethics percentage and some financial figures. The statistical analysis showed that ethics and creative accounting had a positive impact on the financial statements.

Suggested Citation

  • Adel M. Qatawneh & Atala M. Alqtish, 2017. "Critical Examination of the Impact Accounting Ethics and Creative Accounting on the Financial Statements," International Business Research, Canadian Center of Science and Education, vol. 10(6), pages 104-111, June.
    • Handle: RePEc:ibn:ibrjnl:v:10:y:2017:i:6:p:104-111
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    References listed on IDEAS

    as
    1. Frank Gigler & Chandra Kanodia & Haresh Sapra & Raghu Venugopalan, 2009. "Accounting Conservatism and the Efficiency of Debt Contracts," Journal of Accounting Research, Wiley Blackwell, vol. 47(3), pages 767-797, June.
    2. Hofer, Christian & Jin, Henry & Swanson, R. David & Waller, Matthew A. & Williams, Brent D., 2012. "The Impact of Key Retail Accounts on Supplier Performance: A Collaborative Perspective of Resource Dependency Theory," Journal of Retailing, Elsevier, vol. 88(3), pages 412-420.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    accounting ethics; creative accounting; financial statements; tax gap;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

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