International Journal of Applied Research
Vol. 2, Issue 3, Part M (2016)
Creative accounting in financial reporting and its ethical perspective
Jutimala Bora, Ashit Saha
Financial reporting is a process which communicates the financial information of a business organization to its users. User groups being too many, and for that matter the financial reporting process of companies have been frequently facing the hurdle of satisfying different such user groups with their diversified needs. Satisfying the desires of share holders regarding high profits, dividends may bring in problems of high taxes, demand for higher wages and bonus etc. On the other hand lower profit trend may have a negative image in the minds of the investors regarding investment choice. Therefore, this requires the accountant to maintain a balance in between according to the needs of the situation and therefore the companies resort to the practice of Creative Accounting. The main objective of this paper is to define creative accounting used in financial reporting and to throw light on the ethical perspective of creative accounting.
How to cite this article:
Jutimala Bora, Ashit Saha. Creative accounting in financial reporting and its ethical perspective. International Journal of Applied Research. 2016; 2(3): 735-737.