Green Accounting from a Budget Perspective

The past century, through the development of data collection systems has allowed the emergence of score functions for measuring the bankruptcy risk for some sectors of activity. The use of these indicators on a large scale in matrix type reports such as BSC or the dashboard of business partners as well as the orientation towards a set of accounting standards have determined the rise of the creative accounting practices in financial accounting. As the global market of the last decade proves to be a volatile, any creative accounting practice should be planned and coordinated a priori as not to be uncovered or inefficient in achieving the goals of the organization that it serves. To meet the needs of the current economy, the present paper proposes a normative and empirical approach to discover and improve the procedures used to generate budgets that stimulate creative accounting.