TEHNICI SPECIFICE DE CONTABILITATE CREATIVĂ Eugenia BOGOS (CALANCEA)

Abstract

In the specialized literature, there is no consensus regarding the definition of the concept of creative accounting. Thus, in the specialized literature there are various approaches, starting from the idea that the concept of creative accounting is used, as a rule, to describe the process by which professional accountants use their knowledge in order to manipulate the figures included in the annual accounts. Creative accountants will always find bizarre and novel ways to twist the numbers to the company's advantage. Their goal is to make a business appear as successful and profitable as possible, and sometimes they will do this by misrepresenting the truth. Where a gray area is found in accounting, it can be exploited, even if it results in misleading investors. The potential of creative accounting is found in six main areas: regulation and flexibility of accounting and legislative regulations, lack of regulation, leeway for managerial judgment regarding future assumptions, the timing of some transactions, the use of artificial accounts, as well as some financial instruments, artificial transactions and finally the reclassification and presentation of financial figures. Creative accounting techniques revolve around the basic process of "debiting and/or crediting an 'incorrect' account" when recording a transaction or event. By default, the process also covers "debiting and/or crediting" the correct accounts the "correct" amount.