 The Financial Statements, Synthesis of the Compromise between the Accuracy of Enterprise Activities and the Handling of Accounting Information’sGheorghe Dumitru ()
Ovidius University Annals, Economic Sciences Series, 2011, vol. XI, issue 1, 804-809 Abstract: All information presented in financial statements must reflect accounting reality in order to satisfy the needs of many different users, among whom there may be conflicts of interest. Conflicts of interest, together with loopholes in accountancy law, room for maneuver in the creation of accountancy policies, and an accountant's freedom to choose his methods, can lead to managers massaging figures by exploiting so-called creative accounting techniques. The practice of creative accounting for the manipulation of final profit figures is known as outcome management. These creative accountancy procedures may be restricted through international standardization as well as through the International's Accounting Standards Board (IASB) initiative, which seeks to reduce the number of alternative interpretations and introduce more rigid standards and increased uniformity to accountancy procedures. Keywords: financial statements; information users; accounting reality; creative accounting; outcome management. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ovi:oviste:v:11:y:2011:i:1:p:804-809 Access Statistics for this article Ovidius University Annals, Economic Sciences Series is currently edited by Spatariu Cerasela More articles in Ovidius University Annals, Economic Sciences Series from Ovidius University of Constantza, Faculty of Economic Sciences Contact information at EDIRC. |
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