INFLUENCING THE PERFORMANCE AND FINANCIAL POSITION AS REPORTED IN THE ANNUAL FINANCIAL STATEMENTS USING CREATIVE METHODS

The accounting is a technique designed to collecting, processing, and interpreting the information about the economic flows. Being in the service of the users, accounting has to be neutral to respond objectively to all the parts interested in its functioning and the society’s results. In an international principle, the balance sheet is the summary document which presents the financial statement and its evolution. It permits the formulation of value judgments regarding the efficiency and the risks afferent to an enterprise, as well as the assessment of future cash movements. The economic theory considers that the goal of the societies is maximization of profit. However, there are enterprises which aim to realize an acceptable profit using different accounting methods. The creative accounting is an exciting problem, which requires a vigorous solution. The normalization process has a huge influence on the development of the creative accounting as it is characterized by a multitude of options and references. As a result, the accounting harmonization becomes an important base for limiting the phenomenon of creative accounting. The role of the setters and accounting professionals is not simple, as it will be showed in the present article.