engleski

Creative Accounting on the Capital Market

The new Financial Accounting Standard (FAS) 157-4 issued by the Financial Accounting Standards Board (FASB) of USA on April 2, 2009 allows companies to use more leeway in valuing their assets under "mark-to-market" accounting. This change in the forefront is pushing creative accounting and its impact on capital markets. Inspired by this change, in this paper we analyze the current situation of accounting creativity in Croatia. In the first part of the paper we will take a look at the effects and used techniques of creative accounting and in the second part we will explore most frequently used accounting creativity and their impact on the financial statements. Finally, in the last part we will look in the future perspectives of the role of accounting creativity in the global economy.

creative accounting ; financial statement ; capital market

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