Oditor, Vol. IV, No. 02/2018
FORMS OF CREATIVE ACCOUNTING AND MOST OF MANIPULATION IN FINANCIAL STATEMENTS
Dragan Cvetković[1], Vinko Bošković[2]
Date received: 01.04.2017.
Date accepted: 15.05.2017.
UDK: 657.632
JEL: M49
Summary
Financial statements and accounting documents are a certificate of financial and financial position as well as the business performance of the entity. In its beginnings, creative accounting was conceived as an instrument of an objective presentation of the financial position and business results of business entities through the financial statements within the accounting regulatory framework. Initially, profit management efforts are legal and within the applicable financial reporting framework. However, over time, accounting techniques become inadmissible, unlawful and contrary to generally accepted accounting principles. Then the haircut of the financial result becomes illegal and turns into falsification of the financial statements. The aim of the paper is to synthesize knowledge about forms of creative accounting in order to indicate the importance and the need for reliable and quality financial reporting. Namely, this paper aims to contribute to the understanding and understanding of how accounting manipulations and the management of the financial result of an enterprise are manipulated.
Key words: accounting statements, creative accounting, managers.