Creative accounting should follow the standards

By Mauro Libi.- Nowadays, the financial structure of organizations has undergone transformations. Economic approaches are no longer the same as in previous times and accounting policies have evolved, giving entry to what is known as creative accounting. This concept is a digression from the fundamental principles of the accounting profession, as it is based on the manipulation of information with defined interests. A trend that has put in question the ethics of the accountant.

Creative accounting consists to manipulate the information to falsely alter what would be the natural result determined according to the accounting policy drawn by the company. Given this panorama, accountants have a great moral and ethical challenge to reverse this situation and return the accounting to the norms of the duty to be. In the interior of creative accounting, there are conservative and aggressive accounting policies that lead to lower accumulated results in a period and to show smaller assets and own resources. Aggressive policies, aim to offer the highest level of accumulated results, assets and own resources at any time.

In addition, these policies are based on accounting standards. They may not faithfully reflect the behavior of companies, since they serve the interests and conveniences of the parties regardless of the main objective of the company. Another creative accounting practice is the smoothing of the result that seeks the manipulation of the information whose uniform result represents a security and trust for the users of the company and the investors.

Creative accounting has impacted on an international scale affecting large companies by discrediting accounting principles by giving ways to management that seeks to reflect an economic strength that is only a product of manipulation. It is imperative to end this practice to rescue the values of the accounting profession, which should be grounded in probity, responsibility, discipline and consistency and ethics.

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