Impact of Creativity in Accounting on Indicators of Financial Statements

The article is devoted to elucidating the essence of creativity in accounting and determining the nature of the impact of creativity elements on the indicators of financial reporting. The analysis of scientific approaches to the interpretation of the essence of creative accounting and their synthesis is performed. The dual nature of creative accounting is revealed, which is manifested in the manner of its impact on the acceptance of management decisions by the users of reporting. The factors that lead to the manifestation of creativity in accounting are determined. It is found that creativity in accounting is mainly generated by the alternatives offered under the company’s accounting policies, and the use of professional judgment of the accountant. The ways of distortion of accounting information in the financial statements are analyzed, and the motives of illegal acts by accountants are presented. The areas of accounting are highlighted, which are characterized by the most pronounced manifestation of the elements of creativity. According to the author, one of the effective ways to curb the manifestations of creativity is to improve the common standards of financial reporting, and strengthen control of their observation.