Embellishment of Financial Statements Through Creative Accounting Policies and Options

Economic, legal and social developments, and also the pressure of information users have made accounting innovation a necessity, thus resulting accounting creativity.Discussed from the accounting specialists’ point of view, creative accounting was supported by basic and alternative treatments used to solve the same problem.In most cases an accounting problem has at least two solutions, with a different effect on the financial position and enterprise performances.The occurrence of creative accounting was influenced by the flexibility of international accounting regulations.In most cases, creative accounting is seen as a negative creation, meant to lead to compiling financial statements that would answer managers’ wishes regarding the financial position and enterprise performance.