Abstract:

The International Financial Reporting Standards include specific requirements for the evidence of the elements of financial statements: specific International Accounting Standards present different aspects of the reporting process, but some are quite brief and give the users the possibility to choose the most advantageous way of presentation. Some problems arise as a result of this “freedom” of presentation, namely the allocation of elements that are meant to enhance investors’ confidence. In this study, there will be highlighted some of the more problematic or unclear areas and the different ways in which creative accounting techniques can be identified if the principles of corporate governance are ignored. Creative accounting may distort the assessment of financial performance and that’s why this subject has become of great interest for analysts and investors.