My Topic

“CREATIVE ACCOUNTING IN
CORPORATE FINANCIAL
REPORTING”

[: Presented By :]
[: Guided By :] Sarthak Bhavsar
Prof. Kavit Anjaria MBA Sem 2 (BEPF)
202324400004
 Agenda

A
Introduction

Motives of Creative Accounting

Types of Creative Accounting

Creative Accounting Methods

Objectives of Creative Accounting

Importance of Creative Accounting

Advantages and Disadvantages

Conclusion 2
Motives of Creative Accounting
Obtaining Personal Gain
Competition
Attracting Investors
Increasing or maintaining the level of capital
Types of Creative Accounting
1. Income Statement Manipulation
2. Balance Sheet Manipulation
3. Overestimating Values
4. Lowering depreciation Charges
5. Delaying Expenses
6. Inventory Manipulation
Objectives of Creative Accounting
1. Meet Targets
2. Rise in Stock Price
3. Minimize Tax
4. Attract Stakeholders
5. Meet Debt Covenent
 Importance of Creative Accounting
1. Financial Flexibility
2. Tax Management
3. Attracting Investment
4. Competitive Advantage
5. Earning Management
6. Avoiding Default
ADVANTAGES DISADVANTAGES
Desired Results Loss of Investors
Reputational Risk
Conclusion
Creative accounting is neither an illegal nor legal only the maximum use of it pushes a company
in scandals.
Creative accounting plays significant role in financial reporting but has been negatively
correlated that means more managers involved in it may decrease the value of financial
information.
 Thank you
for co-operate with
me