Ethics in Creative Accounting

Vol-1 | Issue-3 | March 2016 | Published Online: 10 March 2016    PDF ( 103 KB )
Dharmeshkumar N. Rana 1

1Ph.D. Scholar, Gujarat University, Ahmedabad Gujarat (India)


The use of creative accounting has become a controversial issue since there are parties both in favour and against the use of Creative accounting. While the management has its own arguments in favour of Creative accounting, to resort to the practices of Creative Accounting, its critics are of different opinion and have apprehensions regarding its use. Although it is a controversial topic still studies reveal that the practices of Creative ac-counting can be judiciously applied with ethical considerations. The present paper attempts to highlight the pros and cons of Creative Accounting by enumerating its importance to various interest groups. The study reveals that Creative Accounting helps to solve many problems which are faced by the management in today‟s complicated and dynamic business environment. But owing to the dynamic and complicated nature of the business transactions and the liberty available in the accounting standards and the procedures, it is difficult to handle the issue of creative accounting.

Creative Accounting, Accounting Ethics, Financial Reporting
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