Creative accounting practices in the context of applying International Financial Reporting Standards (IFRS): A critical approach to professional reality
Keywords:
Creative Accounting, International Financial Reporting Standards (IFRS), Financial Disclosure, Professional ResponsibilityAbstract
This study aims to analyze creative accounting practices under the application of International Financial Reporting Standards (IFRS), focusing on how the flexibility of these standards may be used to present financial data in ways that do not explicitly violate rules. The research highlights the professional and ethical impact of such practices on the quality and credibility of accounting information. A qualitative analytical approach was used through a critical review of literature, professional reports, and real-world examples to understand the motives behind creative accounting and assess its implications in an international reporting context. The findings revealed that areas such as fair value measurement and asset impairment are especially vulnerable to creative manipulation. Key recommendations include reinforcing ethical controls, activating the oversight role of professional bodies, and providing clearer interpretive guidelines to limit excessive discretion—thus promoting transparency and protecting investor interests.
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