Creative Accounting
Expert Definitions of Creative Accounting These authors, each presenting a different perspective, define the issue of creative accounting in their books. Howard Schilit , writing from a financial research perspective, refers to creative accounting as financial shenanigans and describes it as, actions that intentionally distort a company’s reported financial performance and financial condition. They range from benign (changes in accounting estimates) to egregious (fraudulent recognition of bogus revenue) . ... (23-24, 2002) Terry Smith presents the view of an investment analyst, We felt that much of the apparent growth in profiles which had occurred in the 1980s was the result of accounting sleight of hand rather than genuine economic growth, and we set out to expose the main techniques involved, and to give live examples of companies using those techniques.