SOME THOUGHTS ON CREATIVE ACCOUNTING AND INTERNATIONAL ACCOUNTING STANDARDS

Abstract

The main objective of this work and to present some reflections on the impact of creative accounting in the framework of the convergence process with international accounting standards.To achieve this objective, we started from the premises that the IASB opted for accounting standard-setting based on principles and not on rules, which require greater subjectivity in the measurement bases of assets and liabilities, and that all preparers of statements are honest, ethic and able to make judgments, estimates and choose those that best lead to true and fair view of the entity.However, taking into consideration that not all standards and criteria are detailed and not straddle all possible of an entity transaction, there is room for alternatives and judgments that allow the adoption of practices considered as creative accounting.For this, the set of international accounting standards was analyzed and present some reflections on our understanding that support the adoption of creative accounting or as a faithful representation of the entity can be modified to support private interests of the entity or the entity administrator.