Creative Financial Accounting: Its Nature and Use

Designed for third year undergraduate, postgraduate and MBA courses in accounting, finance, banking, management, and business studies, this book undertakes a comprehensive examination of the issue of creative accounting. Accounting profession announcements and standards in the UK and the USA, relating to different issues of accounting, have been reported and critically analyzed and evaluated. Agency theory and positive accounting theory arguments are used to explain the phenomenon of creative accounting; and the relationship between accounting regulations and creative accounting are explained. The question is asked whether creative accounting is restricted to one (conventional) accounting system rather than another (cash flow) system.