EFFECT OF CREATIVE ACCOUNTING ON CORPORATE PERFORMANCE THE NIGERIAN MANUFACTURING COMPANIES

📄 Project Abstract

Creative accounting is also known as aggressive accounting it is a method that deals with problems of accounting evaluation, dispute items and occurrences. (Salome, Ogbonna, Marcel & Echezonachi 2012). This flexibility provides room for manipulation, misrepresentation and deceit, therefore accountants use thier understanding of accounting regulations to manipulate the numbers recorded in the accounts of a company. However, creative accounting implies distinct stuff for distinct individuals, one can strongly argue that creative accounting is referred to as income smoothing, earnings management, earnings smoothing, economic engineering and cosmetic accounting as viewed by the United States and Europe (Salome et al 2012). The writers share the view that creative accounting is expressed in a manner complimentary to shareholders and investors through window dressing and reporting of revenues and assets in a manner complementary to shareholders and investors (Salome et al 2012). So, apart fr...