THE IMPACT OF APPLYING CREATIVE ACCOUNTING ON THE RELIABILITY OF ACCOUNTING INFORMATION IN THE FINANCIAL STATEMENTS

Abstract:

The manipulation of accounts and financial statements to hide the actual
performance of companies in order to reach useful results for the company or
some of its employees is what it means by creative accounting or profit
management. Such methods are described as provided that it is practiced
without exceeding the accepted accounting standards and principles but by
exploiting the elements of flexibility and choice in those standards and
principles .
The practice of these methods has a very important effect in undermining
market confidence in the information contained in the financial statements
published by the companies.