{"id":11834,"date":"2019-07-12T12:00:11","date_gmt":"2019-07-12T09:00:11","guid":{"rendered":"https:\/\/modecon.mnau.edu.ua\/?p=11834"},"modified":"2019-07-16T09:19:34","modified_gmt":"2019-07-16T06:19:34","slug":"the-economic-essence-of-creative","status":"publish","type":"post","link":"https:\/\/modecon.mnau.edu.ua\/en\/the-economic-essence-of-creative\/","title":{"rendered":"Hurina N., Hudym I., The economic essence of creative accounting and its application by enterprises of Ukraine"},"content":{"rendered":"

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JEL<\/strong> Classification:<\/strong> M29; M49; M41.<\/td>\nDOI<\/b>: https:\/\/doi.org\/10.31521\/modecon.V15(2019)-12<\/a><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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Hurina Natalia<\/strong>, Ph.D. (Economics), Assistant Professor of the Department of Accounting, National State Tax Service University of Ukraine, Irpin, Ukraine<\/p>\n

ORCID ID<\/strong>: 0000-0001-9433-069X<\/a>
\ne-mail<\/strong>: oblik2014@ukr.net<\/a><\/p>\n

Hudym Iryna<\/strong>, Master’s student of the Department of Accounting, National State Tax Service University of Ukraine, Irpin, Ukraine<\/p>\n

The economic essence of creative accounting and its application by enterprises of Ukraine<\/h2>\n

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Introduction<\/strong>. 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.<\/p>\n

Purpose<\/strong>. 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.<\/p>\n

Results<\/strong>. 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.<\/p>\n

Conclusions<\/strong>. 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.<\/p>\n

Keywords<\/strong>: creative accounting; accounting; professional ethics; creative accounting; profit management; financial reporting.<\/p>\n

References:<\/strong><\/p>\n

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  1. Watts, R. & Zimmerman, J. L. (2010). Positive accounting theory: a ten year perspective. Accounting Review<\/em>, 65(1), 131-156.<\/li>\n
  2. CIMA Official Terminology. [2005 Edition]. CIMA Publishing, Oxford, 2005.<\/li>\n
  3. Creative Accounting and Financial Reporting: Model Development and Empirical Testing. International Journal of Economics and Financial Issues<\/em>, 2015, 5(2), 544-551.<\/li>\n
  4. Diana, B., Beattrice, V. (2010). Creative accounting \u2013 players and their gains and loses. Annals of Faculty of Econmics,<\/em> 1(2), 813-819.<\/li>\n
  5. Gowthorpe, C., Amat, S. (2015), Creative accounting: some ethical issues of macro- and micro-manipulation<\/em>. Journal of Business Ethics, 57, 55-64.<\/li>\n
  6. Head, (2011). Creative accounting – a threat to the profession and society. Accounting and Audit<\/em>, 1, 31-42.<\/li>\n
  7. Kantayeva, V. (2013). Historical Aspects and Modern Approaches to Considering the Value of Creative Accounting in International Financial Reporting Standards. Bulletin of the University of Banking of the National Bank of Ukraine<\/em>.<\/li>\n
  8. Medvedev, Yu. (2009). Accounting book. M.: T.K. Velbi, Izd-o Prospek.<\/li>\n
  9. Panchenko, A. (2012). “Creative accounting” as a means of manipulating the size of financial results of accounting. Economic sciences. Series “Accounting and Finance”<\/em>, 9 (33).<\/li>\n
  10. Parker, H. (2012). Macmillan Dictionary of Accounting [2nd ed.]. London : The Macmillan Press Ltd.<\/li>\n
  11. Shah, S., Butt S., Tariq, Y.B. (2011). Use or abuse of creative accounting techniques. International Journal of Trade, Economics and Finance<\/em>, 2(6), 531-536.<\/li>\n
  12. Siegel, G. & Shim, J. K. (2005). Dictionary of Accounting Terms [4th ed.]. New York : Barrons.<\/li>\n<\/ol>\n

    [\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]Received:<\/strong> 22 May 2019<\/p>\n

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    Hurina N., Hudym I. (2019). The economic essence of creative accounting and its application by enterprises of Ukraine. Modern Economics<\/em>, 15(2019), 84-88. DOI: https:\/\/doi.org\/10.31521\/modecon.V15(2019)-12.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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    [vc_row][vc_column][vc_row_inner][vc_column_inner][vc_column_text] JEL Classification: M29; M49; M41. DOI: https:\/\/doi.org\/10.31521\/modecon.V15(2019)-12 [\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_column_text] 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
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