Creative Accounting: A Literature Review

Brijesh Yadav
The SIJ Transactions on Industrial, Financial & Business Management (IFBM)   unpublished
Our research objective is to show the effect of creative accounting on the performance of the company which uses these techniques to manipulate their accounts to show desired results. We also discussed about different types of creative accounting and parties involved in it and what are the motivation factors so that people are involved in creative accounting techniques. We also talked about Anglo-Saxon and European continental types of creative accounting in which they allowed different types
more » ... alternative method for creative accounting. We also analysed involvement of different professionals in creative accounting like accountant, lawyers and bankers. They help companies in deciding about the different instruments which help company to involve in creative accounting. Corporate governance can play an important role in financial reporting of the company because financial report shows the state of affairs of the company and investors take decision on the basis of financial report of the company. So it is necessary that financial report should show "True and Fair view" of the company. Professional and managers ethical responsibility is also discussed in our study. In which it is analysed who will be responsible for the failure of the company.