Hurina Natalia, Ph.D. (Economics), Assistant Professor of the Department of Accounting, National State Tax Service University of Ukraine, Irpin, Ukraine

ORCID ID: 0000-0001-9433-069X
e-mail: oblik2014@ukr.net

Hudym Iryna, Master’s student of the Department of Accounting, National State Tax Service University of Ukraine, Irpin, Ukraine

The economic essence of creative accounting and its application by enterprises of Ukraine

Introduction. The article deals with the features of creative accounting in the activities of the accountant in modern conditions, the history of development, the methods of creative accounting. Described manipulations of financial information, which is called a creative accounting, which undermines the public’s confidence in the profession of accountant.

Purpose. Detection and analysis on the basis of theoretical researches of the scientists of the peculiarities of the influence of creative accounting on increasing the efficiency of the enterprise. Determine the role of users of information, especially investors and owners, in the preparation of financial statements. Studying the peculiarities of corporate governance in order to anticipate fraud.

Results. The practice of creativity in accounting usually involves overstatement of assets and inventories, cost reductions, changes in depreciation methods, or provision of provisions in the form of an asset. The technical methods of accounting reflect the changes in accounting standards that take place to reduce manipulations with financial information.

Conclusions. Research shows that corporate governance is the best way to reduce the practice of creative accounting, the idea of which arose after major failures resulting from unethical bills, so at the moment actively contributes to reducing the manipulation of accounting. In some cases, the use of “creative” accounting and reporting methods is one of the evidence of unscrupulous leadership actions that are being pursued administratively and criminally in a market economy, since the massive application of such accounting methods has a negative impact on the main indicators of economic growth in the country. Most companies with negative intentions use methods of creative accounting, and as a result become the epicenter of scandals. Unethical behavior at enterprises is the reason for the lack of moral values, which can be both individual and professional.

Keywords: creative accounting; accounting; professional ethics; creative accounting; profit management; financial reporting.

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