CREATIVE ACCOUNTING IMPACT ON THE ECONOMIC ENTITY'S PATRIMONIAL AND FINANCIAL SITUATION. CASE STUDY

This paper empirically addresses the issue of creative accounting in financial reporting, focusing on how it influences the quality of financial statements prepared and reported by economic entities. Creative accounting cannot be automatically classified as legal or illegal, in the absence of an in-depth analysis, but is negatively correlated with the approach of managers or professional accountants to manipulate accounting data to achieve certain objectives or meet certain financial indicators relevant to third parties. The data were collected from open sources, from databases available to the general public, for the study being selected an economic entity based on certain representative criteria, such as economic size, business segment or history. The study revealed that, based on the analysis of the financial statements prepared by the economic entity for a period of two consecutive years, were highlighted elements that suggest a use of imaginative accounting, being likely to mislead stakeholders about the performances registered.