International Accounting

Creative accounting: The concept, background, motives, and the techniques applied: A review of literature

Vol. 21, Iss. 4, APRIL 2018

Received: 13 March 2018

Received in revised form: 21 March 2018

Accepted: 29 March 2018

Available online: 14 April 2018


JEL Classification: 41

Pages: 388412

Ustinova Ya.I. Novosibirsk State University of Economics and Management (NSUEM), Novosibirsk, Russian Federation

ORCID id: not available

Importance This article considers the issues of occurrence, development and application of creative accounting in formation of financial reporting.
Objectives The article aims to pursue a comprehensive study of the problem of interpretation of the concept of Creative Accounting, its background, motives, and techniques described in the works by scholars abroad. As well, it aims to identify the essential signs and features of creative accounting, its advantages and disadvantages, define and justify the limits and conditions of its admissibility.
Methods For the study, I used the methods of comparative and logical analyses, typology and grouping, induction and deduction.
Results The article reveals the essential signs of creative accounting, its advantages and disadvantages, defines and substantiates the limits and conditions of its admissibility, groups the interpretations of the concept of creative accounting, and shows the background, motives, and applied techniques.
Conclusions Taking into consideration the importance of positive aspects of creative accounting, the article concludes that it is advisable to authorize the use of it when forming a financial reporting.

Keywords: true and fair view, creative accounting, professional judgment, accounting standards, ethical standards


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