Reference no: EM132844950

Creative Accounting Debate

• "Creative accounting" has been defined as practices that follow the technical requirements of laws and regulations but still deviate from the intent of those standards. While this sounds deceitful on the surface, not all practices that operate outside of normal accounting rules are automatically harmful. It depends on the intent. The use of adjusted earnings, for example, is so commonplace that it is now debatable whether the practice even qualifies creative accounting.

Upon successful completion of this discussion, you will be able to:

problem 1: Evaluate the impact of regulatory changes on financial operations.

problem 2: Analyze the appropriateness of creative accounting measures.