Advanced Financial Reporting - Prevalence of Creative Accounting - Essay Example

Only on StudentShare

Extract of sample
Advanced Financial Reporting - Prevalence of Creative Accounting

This report will be evaluating the reasons that give rise to creative accounting by organizations; the grounds for the nativity of this practice will also be discussed. The evaluation of the efforts made by existing standards and accounting practices in controlling and reducing aggressive accounting will be catered in the report. The levels of success achieved by regulatory bodies will also be discoursed. Increasing the complexity of accounting treatments in such a creative and aggressive way, actually results in deviation from the actual spirit of the suggested treatment. Transactions are treated with a high level of quibble and in a complex manner so as to obtain desired misrepresentation of items present in financial statements, such as assets, liabilities, expenses, revenue, and stock options. It is generally successfully applied over the transactions of inherently complex items of financial statements, for example Derivatives, Hedge accounting, leases, insurance contracts, construction contracts, financial instruments, impairment of assets, revenue recognition and manipulation can easily be made. Reasons for using Creative Accounting Creative accounting aims to manipulate ultimate shareholder’s wealth, showing high paper profits, and hiding right earning figures from stakeholders (Farlex 2011). ...Show more

Summary

Introduction. Creative accounting is an innovative yet unethical practice that converts the sense of an accounting treatment while being within the scope of treatment prescribed by accounting standards…
Author : ovandervort
Advanced Financial Reporting - Prevalence of Creative Accounting essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Advanced Financial Reporting - Prevalence of Creative Accounting"
with a personal 20% discount.
Grab the best paper

Related Essays

Advanced financial accounting
However, with businesses becoming international, the distinction between domestic and foreign stakeholders should be resolved. This can only be possible if uniformity can be introduced in existing accounting standard.
11 pages (2750 words) Essay
Advanced Financial Reporting and Theory
Critically assess how the use of IFRSs contributes to increased transparency for stakeholders, and the extent to which IFRSs can influence economic stability. You should develop your arguments in the context of appropriate accounting theory. The international business scenarios has evolved in the last decades more than it had for many previous years.
7 pages (1750 words) Essay
Advanced financial reporting
The paper comprises 3 questions, each related to aspects pertaining to environmental reporting. It begins with an initial introduction about the aspects of environmental compliance and reporting.The first question is in connection with two provided annual reports of Halma plc and United Utilities plc, which required critical evaluation adequacy of disclosures given in the reports regarding environmental reporting.
12 pages (3000 words) Essay
Advanced Financial Reporting
Introduction In today’s world the primary objective of a firm is to survive the cut-throat competition and one way to do that is to make more profits and add value to shareholders’ wealth.The ladder of success for any firm is ‘growth’ which can be achieved either by expanding existing resources or introduction of new products and services.
8 pages (2000 words) Essay
Creative Accounting
The manipulations have taken place in different forms. While analysing the creative accounting in the context of Greek, Baralexis (2004) found out that the manipulation of accounting has been well documented in accounting literatures and there are examples of manipulation in account books dating back to 1920s.
14 pages (3500 words) Essay
Advanced Financial Reporting
These standard are rigid and do not vary from one business to another. Ever business is bound to follow these standards in order to maintain the usefulness of information that is displayed in financial
8 pages (2000 words) Essay
Advanced financial reporting and regulation
IAS 38 is applicable to those intangible that are not dealt in by other IAS. The examples of intangibles are brand names, franchises, computer software, licenses, and intangible under development. The intangible should have a separate identification and the entity should
8 pages (2000 words) Essay
Advanced Financial Reporting and Regulation
It takes a critical look at this concept of fair value accounting, with the intention of finding out whether the statement above is true or false. This paper will also identify other accounting measurements, and it will give the benefits and drawbacks of fair value
8 pages (2000 words) Essay
Advanced Financial Reporting and Regulation
This has resulted to huge debates concerning the advantages and disadvantages of fair value accounting (Laux and Leuz, 2009, pp. 826—834). Fair value allows assets to be valued at amounts that can
8 pages (2000 words) Essay
Advanced Financial Reporting & Regulation
The fair value method of accounting which was commonly used for the accounting processes of the big and small companies in the Wall Street was identified as a major triggering factor for
10 pages (2500 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT