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.

Visit

http://maurolibiempresario.blogspot.com/

http://maurolibithinkingforbusinesses.blogspot.com/

http://maurolibivenezuela2015.blogspot.com/

http://maurolibicaracas.blogspot.com/

http://maurolibivenezuela.blogspot.com/

http://maurolibicrestaniempresariodeexito.blogspot.com/

http://maurolibicrestani15.blogspot.com/

Follow me

@maurolibi12

Facebook

http://www.mauro-libi.com/

Comentarios

Entradas populares de este blog

How does technology help in business communication?

One of the elements which has undoubtedly worked to support our growth, expansion and excellence projects in the last years, has been technology applied to business communication. I still remember when everything was reduced to memos, billboards, advertisements, photos and one or another printed publication in order to communicate inside the company; at the same time absolutely massive Advertising in existing media was in charge to go to the great public which included our customers and prospects. Today we can say that with the advance of humankind, communication needed is also appearing. And our times make use of digital communication to improve business processes with more efficient and functional ways which allow more interaction, and overall, business productivity. Technology in communication expressed in the use of Internet, and with it, the Web, social networks, e-mails, multimedia resources (videos, infographics, memes, podcast, live broadcast, etc.); joine...

Mauro Libi: Where is the performance evaluation points going?

On some occasions, we have recall to the performance evaluation but only in a lateral way, so in this opportunity we will talk a little bit more about the subject, in particular, on the trends of this system.Let us define that the performance evaluation is a formal system which objective is to estimate the accomplishment of the worker’s labor obligations.The idea is to document the performance and productivity of an employee to point out what areas they could improve. This instrument allows the managers to evaluate their workers and then, use the evaluation results at the moment to decide a promotion, transfer, dismissal or a salary increase of these employees.With performance evaluation, team leaders, managers or directives have the possibility to carry out a quantitative and qualitative analysis of the efficiencyrank that the workers show in the performance of their tasks. The issue that keeps us occupiedhas to do with the validity and reliability of the traditional ...

Mauro Libi: How to become a successful businessman

Success is a goal we all want to achieve but have no idea how. There are hundreds of stories of men who have achieved success. If we analyze them all, we come to the same conclusion: Wanting to succeed and working hard is the key. Experts say that there are several secret to achieve success in what one intends. Some even say that there is a genetic predisposition to being a business winner but more important to succeeding is your attitude, optimism, knowledge generated through a period of preparation while still formulating your decision on a suitable career. When people possess extraordinary abilities for decision making, which is linked to the stronger emotional intelligence, it goes tummy a better chance of getting what they wants. Successful people dream big. These dreams turn into ideas. Acting on those ideas can grow into a million dollar business. To go from idea to action, you must have a sense of direction, which can lead to a strategic roadmap. Acc...

Mauro Libi Entrepreneur

Buscar este blog