Empirical Research on the Ethics of Creative Accounting

Abstract

The issue of ethics in financial accounting arises in the conditions under which it aims to produce an image of reality so that diverse recipients are informed, and which depend on the assessment of the participants. Their ethics play a particular part in finding the truth, however, because they are those who observe, understand, formalize, and, finally, create financial statements which should reflect the reality faithfully. As temptations are considerable, the search for truth, through formalizing a concrete economic reality, is guaranteed only by the professionalism and consciousness of those involved in the accounting of finance. Accounting practices are basic, however, for creative accounting numerous problems occur. Creating accounting does not clearly correspond to its spirit, even though it fulfils statutory requirements, accounting principles, and reporting norms. The creative accounting function for academics, regulators and investors is of great importance in developing and reporting on financial performance in business. The aim of this research is to identify the degree in which employees in accounting firms in Lebanon use creative accounting techniques.

Keywords

• creative accounting
• ethics
• financial fraud
• innovation