Creative Accounting Standards and Its Techniques

Abstract

The study brought to the multi-dimensional nature of the ongoing financial crises and its effect on financial reporting by way of increasing adoption of creative accounting. Creative accounting offers a formidable challenge of the accounting profession which when carried to extreme negativity has cast aspersion on the credibility of accounting principles and standards. In general, creative accounting lends itself as a deceitful and undesirable practice. The effect of the creative accounting raises the need for a close scrutiny of the potential abuse of accounting policy choice and manipulation of transactions. The ethical implication of the Creative Accounting raises the need for a close scrutiny of the potential abuse of accounting policy choice and manipulation of transactions.