International Accounting

Creative accounting: To be or not to be?

Vol. 21, Iss. 5, MAY 2018

Received: 26 March 2018

Received in revised form: 11 April 2018

Accepted: 25 April 2018

Available online: 15 May 2018


JEL Classification: М41

Pages: 502–519

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

ORCID id: not available

Importance This article analyzes and discusses the implications and consequences of the creative accounting application in the activities of economic entities.
Objectives The article aims to study the positive and negative aspects of creative accounting, define and substantiate 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 highlights moral and ethical premises that give grounds for positive and negative evaluations of creative accounting. It summarizes the arguments in favor of the admissibility of application of creative accounting given in the works by foreign scientists, and systematizes their interpretation. The article permissible substantiates the limits of creative accounting and indicates the restrictions of its application.
Conclusions The article concludes on rationality of use of positive aspects of creative accounting with limitation of its negative manifestations through concerted actions of the developers and makers of accounting standards, professional regulators, and the actual companies.

Keywords: creative accounting, reason for creative accounting, acceptance limits, restrictions, ethical norms and standards


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