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ISSN: 2344 - 102X
ISSN-L: 2344 - 102X
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Article from Volume 4, Number 1, Year 2016| CREATIVE ACCOUNTING PRACTICES: AN EMPIRICAL STUDY OF INDIA | 
Download | | Author(s): Madan Lal Bhasin | | DOI: 10.4316/EJAFB.2016.412 | | Abstract: Shockingly, few loopholes in the accounting standards provide enough room for use of Creative Accounting (CA) practices. Thus, CA practices do not provide a "true and fair" view of the FS, since lot of crunching of financial numbers is done, within the purview of applicable laws and prevailing accounting standards. As part of this study, a questionnaire-based survey methodology was used, 14 specific research questions were asked, and 120 questionnaires were distributed to the preparers' and users' of the company FS. Finally, 85 responses from the participants were collected and analyzed using the percentage and frequencies of respondents. The study revealed that the practice of CA is always a deliberate attempt to gain undue advantage for accountants, managers and companies. We recommend that "CA practices should be considered as a serious crime, and as such, accounting bodies, law courts and other regulatory authorities need to adopt very strict punitive measures to stop unethical CA practices." | | Keywords: Creative Accounting, Corporate Sector, India, Financial Statements, GAAP, IFRS, Corporate Governance, Forensic Accounting | References:
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