To the question of «creative approach» to the formation of information disclosured in financial statements

Abstract

Importance: today the accounting service knowingly or unknowingly hides the real picture of the property and financial situation of the organization. The motives for misstatement of financial statements can be very diverse, which involves the use of various methods. Purpose: the article is devoted to some aspects of the application of «creativity» to the formation of information disclosed in financial statements. Research design: legislative regulation and standardization of financial accounting procedures serve to prevent unintentional errors. Financial statements generated on its basis are the main source of information about the property and financial position of an economic entity. In the context of increasing competition, the problem of solvency becomes more and more urgent for economic entities, which requires finding ways to finance and receive funds. In some cases, this is due to the distortion of indicators based on the use of a «creative approach» to the formation of information disclosed in financial statements in order to improve indicators that affect the performance of an economic entity. Results: the article reveals the essence and content of the «creative approach», elements of which are always present in accounting, however, its significance, target nature and consequences of its application may, to one degree or another, contradict the concept of reliability and impartiality of financial statements.