A primary benefit of public accounting statements is that they allow investors to compare the financial health of competing companies. However, when firms indulge in creative accounting they often distort the value of the information that their financials provide. Creative accounting can be used to manage earnings and to keep debt off the balance sheet.
Investment dictionary. Academic. 2012.
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creative accounting — Misleadingly optimistic, though not illegal, forms of accounting. This can occur because there are a number of accounting transactions that are not subject to regulations or the regulations are ambiguous. Companies sometimes make use of these… … Accounting dictionary
creative accounting — ➔ accounting * * * creative accounting UK US noun [U] (also creative accountancy) ► ACCOUNTING the use of methods of recording financial information about a company, etc. which are legal but which do not show the real situation clearly, usually… … Financial and business terms
creative accounting — or creative accountancy see ↑creative above. • • • Main Entry: ↑create * * * creative accounting UK US noun [uncountable] business the practice of showing financial information in a way that gives a false idea but is not illegal Th … Useful english dictionary
Creative accounting — Cooking the books redirects here. For the Black Books episode, see Cooking the books (Black Books episode). Creative accounting and earnings management are euphemisms referring to accounting practices that may follow the letter of the rules of… … Wikipedia
Creative accounting — The manipulation of *financial statements through the use of imaginative or unusual accounting techniques. Creative accounting techniques include, among other things, the following: (i) extension of the *amortization periods of *long term assets… … Auditor's dictionary
creative accounting — Misleadingly optimistic, though not illegal, forms of accounting. This can occur because there are a number of accounting transactions that are not subject to regulations or the regulations are ambiguous. Companies sometimes make use of these… … Big dictionary of business and management
creative accounting — N UNCOUNT (disapproval) Creative accounting is when companies present or organize their accounts in such a way that they gain money for themselves or give a false impression of their profits. Much of the apparent growth in profits that occurred… … English dictionary
creative accounting — noun Financial accounting practices which are usually not explicitly illegal, but which are unorthodox, imaginative, usually misleading, and of questionable ethics. Italy’s public deficit is wi … Wiktionary
creative accounting — This term refers to the presentation of a company s results in a way that, although generally legal, glosses over the problems and makes the results appear better than they are. It was suggested that some creative accounting might help to… … English Idioms & idiomatic expressions
creative accounting — /kriˌeɪtɪv əˈkaʊntɪŋ/ (say kree.aytiv uh kownting) noun the structuring or adapting of accounts to meet a desired outcome, to an extent that is misleading but not illegal: *The … government did itself no favours by exaggerating early spending… … Australian English dictionary