Influencing the performance and financial position as reported in the annual financial statements using creative methods
West University of Timișoara, Romania
PROCEEDINGS of
North International Conference of Economics,
Issue 1 / 2016,
pp.109-113
ISSN 2537-317X
ABSTRACT
The accounting is a technique designed to collecting, processing, and interpreting the
information about the economic flows. Being in the service of the users, accounting has to be
neutral to respond objectively to all the parts interested in its functioning and the society’s
results. In an international principle, the balance sheet is the summary document which
presents the financial statement and its evolution. It permits the formulation of value judgments
regarding the efficiency and the risks afferent to an enterprise, as well as the assessment of
future cash movements. The economic theory considers that the goal of the societies is
maximization of profit. However, there are enterprises which aim to realize an acceptable profit
using different accounting methods. The creative accounting is an exciting problem, which
requires a vigorous solution. The normalization process has a huge influence on the
development of the creative accounting as it is characterized by a multitude of options and
references. As a result, the accounting harmonization becomes an important base for limiting
the phenomenon of creative accounting. The role of the setters and accounting professionals is
not simple, as it will be showed in the present article.
Keywords: Financial statements; Creative accounting; Balance sheet.
