Framework to Identify Global Creative Accounting Practices with Reference to Accounting Standards an Exploratory Research

Abstract

Creative accounting has been prevailing for long in accounting sphere and has emerged as one of the greatest concern in recent times due to the collapse of many high profile companies throughout the globe. Creative accounting is the manipulation and intelligent processing of financial numbers. It is the application of aggressive accounting tools to depict the better position of the firm. Researchers have shown a keen interest in creative accounting due to an exponential rise in the number of cases around the turn of this century.The present study entitled Framework to Identify Global Creative Accounting Practices with reference to Accounting Standards: an Exploratory Research is a research to explore the concept of creative accounting with the analysis of numerous cases on creative accounting across different continents. The cases are thoroughly analysed with an intention to scrutinize the motives and techniques of creative accounting across all the cases. This study has done so by collecting data of a variety of financial scams across the globe. The cases of creative accounting were selected spanning a period of 22 years (1994-95 to 2016-17) to give a broad spectrum to the study. While analysing these widespread evidences a large number of motives and techniques were discovered. The study was conducted with an objective to fill the gap in literature by focussing on the humongous issue of creative accounting in which the financial numbers are manoeuvred by companies by violating some or the other accounting standards and principles. newline