Creative Accounting versus Aggressive Accounting – Exploring Specific Dimensions
-
Daria MOSKWA-BĘCZKOWSKA Faculty of Management and Computer Modelling, Kielce University of Technology, Poland
-
Julia RECZYŃSKA Faculty of Management and Computer Modelling, Kielce University of Technology, Poland
In business practice, there is a statement that creative accounting refers to actions within the scope of accounting law that are legally prohibited. In other words, it encompasses all bookkeeping activities that distort the financial and asset situation of an economic entity. This, therefore, contradicts the principle of a true and fair view mandated by the Accounting Act of September 29, 1994, which requires entities to present their financial results in accordance with their actual state. However, in the literature on the subject, these actions are not designated as creative accounting but as aggressive accounting. Furthermore, creative accounting is presented as a positive phenomenon in accounting systems. Hence, the diversity of interpretations of these terms in both the literature and business practice has become a basis for their systematization.
The aim of this article is a comparative analysis of creative accounting and aggressive accounting, as well as presenting the results of original survey research regarding the knowledge and correct interpretation of these terms within the accounting community.
Copyright© 2023 The Author(s). This article is distributed under the terms of the license CC-BY 4.0., which permits any further distribution in any medium, provided the original work is properly cited.
Moskwa-Bęczkowska, D. and Reczyńska, J. (2023). Creative Accounting versus Aggressive Accounting – Exploring Specific Dimensions, Journal of Applied Economic Sciences, Volume XVIII, Winter, 4(82), 267–276. https://doi.org/10.57017/jaes.v18.4(82).01
Article's history:
Received: 7th of October, 2023; Received in revised form: 27th of October, 2023; Accepted: 19th of November, 2023; Available online: 25th of November, 2023. Published as article in the Volume XVIII, Winter, Issue 4(82), 2023.
[1] Abdulsaed, A. H. and Rejeb, A. B. (2023) The Impact Relationship Between Accounting Disclosure and Creative Accounting in the Environment of Iraqi Banks, International Journal of Professional Business Review, 8(5), e01658. https://doi.org/10.26668/businessreview/2023.v8i5.1658
[2] Antczak, J. (2016). Creative accounting and financial security of the enterprises, Logistics, Issue 1, 19-24. https://www.infona.pl/resource/bwmeta1.element.baztech-d878c419-b6fd-4dba-86d8-ade9a11022da
[3] Grabowska, A. (2021). Creative Accounting - Where is its Limit Compared to Aggressive Accounting, In: Contemporary challenges of financial reporting and auditing, Andrzejewski M. and Zieniuk P. (eds.): 319-328, Poltext, Warsaw. ISBN 978-83-817-5325-8
[4] Gut, P. (2006). Creative Accounting vs Falsification of Financial Statements, C.H. Beck, Warsaw. ISBN: 837-48-336-53
[5] Hołda, A. (2020). Fraud and accounting manipulations vs creative accounting, PWE, Warsaw. ISBN: 978-83-208-2429-2
[6] Król, D. (2015). Creative accounting vs. aggressive accounting, Financial Sciences, 2(23), 11-21. https://www.dbc.wroc.pl/dlibra/doccontent?id=31067
[7] Mirdan, A. and Manhel, I. (2017). Creative accounting Standards and its techniques, International Journal of Research, 04(01), 939. file:///Users/laura/Downloads/6772-7080-1-PB.pdf
[8] Nowak, E. (2002). Accounting Basic Course, PWE, Warsaw. ISBN: 978-83-208-1365-4
[9] Oladele, S. (2023). The Roles of Auditors in Managing the Challenges of Creative Accounting in Nigeria, African Scholars Journal of Business Development and Management Resources, 30(7), 59 – 66. https://www.africanscholarpublications.com/wp-content/uploads/2023/10/AJBDMR_VOL.30_NO7-6.pdf
[10] Ostrowska, P. (2022). The issues of creative and aggressive accounting and forensic audit in the light of accountants’ opinions, Academic Review of Business and Economics, 2(1), 95-113. https://arbe.ue. katowice. pl/wp-content/uploads/2022/11/06_art_6_Ostrowska.pdf
[11] Pfaff, J. (2022). Accounting – Basics, The Accountants Association in Poland, Warsaw. ISBN: 978-83-7228-552-2
[12] Pięcek, E. and Brzeziński, C. (2023) Creative and aggressive accounting, Prospects of accounting development: the young researcher’s view, ISSC, 273-277. ISBN 978-9975-147-93-4. https://doi.org/10.53486/issc2023.34
[13] Shevchenko, L. and Liadska, V. (2022) The essence of creative accounting. Economics Finances Law, 6, 24-26. https://doi.org/10.37634/efp.2022.6.5
[14] Szewczyk-Jarocka, M. (2015). Creative Accountancy, Scientific Journals of the State Higher Vocational School in Płock. Economics Science, 21, 29-38. file:///Users/laura/Downloads/163-Tekst%20artyku% C5%82u-477-1-10-20170321.pdf
[15] Uziębło, A. (2012). Intentional Distorting of Financial Statements - Causes and Examples, Finance, Financial Markets, Insurance, 51: 879-888. https://wneiz.pl/nauka_wneiz/frfu/51-2012/FRFU-51-879.pdf
[16] Wąsowski, W. (2010). Creative Accounting, Falsification of Financial Statements, Difin, Warsaw. ISBN: 978-83-7641-168-2
[17] Zielińska, H. (2022). Main determinants of accounting fraud, Economic studies. Economy Society Environment, 2(10), 153-170. http://studiaekonomiczne.ans-ns.edu.pl/images/czasopismo/2022/10/SE_10_ Zielinska.pdf[accessed Nov 17 2023].
[18] Verkariya S. (2023). Accounting/Financial Fraud: A Study, Wesleyan Journal of Research, 14/1 (XXVIII): 185-189. https://www.researchgate.net/publication/374086587_ACCOUNTING_FINANCIAL_FRAUD_A_STUDY
[19] *** WorldCom. https://www.aferyfinansowe.pl/afery-finansowe-naswiecie/worldcom/ (retrieved on June 25, 2023).