ACCOUNTING AND CREATIVITY: A SOCIOLOGICAL AND PSYCHOLOGICAL APPROACH

This article presents aspects related to creativity in accounting. In our approach we started from theoretical aspects regarding the position of accounting in the field of scientific knowledge. The paper aims to justify these positions (as a language of communication, communication tool, social game), and from there to mirror the way of expressing creativity in accounting. In terms of research methodology, we have appealed to a qualitative research inspired by sociology and psychology. The sociological survey shows the vision of society related to creators, the way in which it admits or rejects them. The sociological approach allows us to understand the importance of collective consciousness in assessing and maintaining the creation. The psychological study regarding the creator describes a creature endowed with an excessive sensitivity, accompanied by a worker with permanent activity, but who is constantly gripped by an "existential doubt". In conclusion, the consultant or the researcher will have to recognise the creator's right to be wrong and surround him with a climate of confidence. This paper shows that there is a path where the one who talks to numbers (and does not have the skill of words) and those who possess the mastery of words actually meet. This paper is part of the PhD research entitled: Identifying and motivation of creative accounting practices - the case of Romanian listed companies, carried out under the guidance of PhD Prof. Feleaga Liliana, research carried out within the framework of the Bucharest Academy of Economic Studies.language figures, social game, creative approach,creative accounting,humman capital

Some Aspects Regarding Changes in Accounting Policies, Estimates and Correction of Errors

Changes in accounting policies may be precipitated by a change in the company’s economic environment. Accounting changes may also result from changes in ownership that cause a shift in the financial reporting objectives, such as from private to public ownership, or vice versa. At each statement date, whether annual or quarterly, management must re-evaluate the many estimates that are required when financial statements are prepared. Changes in estimates may have a significant impact on reported results. Finally, there are necessary accounting changes that arise when a company discovers that it has made an accounting error in previous accounting periods. Obviously, errors need to be corrected in order to present fairly the financial condition and results of operations of the prior periods, even if the current period is not affected. Consistency and comparability must be achieved by correcting any errors that have a material effect on previously reported results. All types of accounting changes affect reported results, but not necessarily in the same way. The objective of our study is to describe the different types of accounting changes, the ways in which they affect reported results, and the accounting approach used to adjust for the changes.accounting policies, changes in accounting estimates, errors of the prior financial year

CREATIVE ACCOUNTING - PLAYERS AND THEIR GAINS AND LOSES

The aim of this paper is to bring into attention an interesting game of accounts manipulation and its playes. Their expectations represent the genesis point of manipulative behaviour and by understanding their actions and gains and losses we may create a link to undestanding the process of creative accounting thinking. The divergent interests of these users (e.g.managers, fiscal authorities and banks) derive from their position and power, and give rise to doubt regarding the objectivity of accountancy information provided by annual financial reports.creative accounting,manipulation accounts, information users

TRANSFER PRICES: MECHANISMS, METHODS AND INTERNATIONAL APPROACHES

Transfer prices are considered the prices paid for the goods or services in a cross-border transaction between affiliates companies, often significant reduced or increased in order to avoid the higher imposing rates from one jurisdiction. Presently, over 60% of cross-border transfers are represented by intra-group transfers. The paper presents the variety of methods and mechanisms used by the companies to transfer the funds from one tax jurisdiction to another in order to avoid over taxation.transfer pricing, intra-firm transaction, tax jurisdiction

FROM CREATIVE ACCOUNTING PRACTICES AND ENRON PHENOMENON TO THE CURRENT FINANCIAL CRISIS

The aim of this paper is to bring into attention the creative accounting phenomenon. Typesof creative accounting practices has been examined comparing scandals occurred in large companiesin the last two decades. In order to realize this scope we define the concept of creative accounting andits various forms, and we try to figure the reasons why we came into a financial crisis again, even if thehistory taught us that the risks are very large. We discuss the implication of creative accounting in thecurrent financial crisis because many financial enterprises have sought state support within a shortperiod of receiving unqualified audit opinion. The research method is a deductive one, fundamentaltype that give us the necessary prerequisites for future research. We believe that creative accountingpractices will not disappear unless the causes which have given rise to them will disappear, too.Therefore, although driven by the intention to limit creative accounting, the accounting normalisersmust take into account the circumstances that allow its expression under close supervision.creative accounting, fraud, audit, financial statements.

A BRIEF REVIEW OF CREATIVE ACCOUNTING LITERATURE AND ITS CONSEQUENCES IN PRACTICE

Our research has as main objective a short review of the aspects approached at theEuropean level regarding the role that creative accounting plays in the life of an enterprise. Inorder to achieve our goal, we have analysed approximately 40 academic articles indexed ininternational database, such as Science Direct, Emerald and ProQuest. We have used alongitudinal classification of the selected articles, studied between the years 1999 and 2009; wehave tried, also, a classification of these papers according to the most frequent debating themes. In the end of our research, we have formulated our own conclusion,, that there is nounanimously or unifying accepted theory at the international or European level regarding what is,what the creative accounting represents or which are its basic principles.creative accounting, financial scandals, financial reporting

THE RELEVANCE OF PSYCHOLOGY THEORIES TO FINANCIAL ACCOUNTING

Starting from the interest that we have found in psychology sciences in order to understand better the way managers, analysts and last but not least investors behave in the decision making process our study focuses on the link between financial reporting, disclosure policies and investors judgment under uncertainty. The theoretical background describes the rational judgment of investors found in economic utility theories but also looks upon the main cognitive and social psychology for irrational behavior in the decision making process. Our research mainly focuses on measuring the influence of five psychological factors on the irrational behavior of potential investor. We showed that overconfidence occurs when investors overestimate the precision of their private signals and their knowledge about the value of a financial transaction and always remember the successfully times and easily forget the failures. Also, we have pointed out that limited attention is frequently associated with changing in disclosure policies and selfcontrol is negatively related to irrational behavior of investor.psychology theories, financial reporting, disclosure, investor, judgment, decision making process, psychology variables

ACCOUNTING AND CREATIVITY: A SOCIOLOGICAL AND PSYCHOLOGICAL APPROACH

This article presents aspects related to creativity in accounting. In our approach we started from theoretical aspects regarding the position of accounting in the field of scientific knowledge. The paper aims to justify these positions (as a language of communication, communication tool, social game), and from there to mirror the way of expressing creativity in accounting. In terms of research methodology, we have appealed to a qualitative research inspired by sociology and psychology. The sociological survey shows the vision of society related to creators, the way in which it admits or rejects them. The sociological approach allows us to understand the importance of collective consciousness in assessing and maintaining the creation. The psychological study regarding the creator describes a creature endowed with an excessive sensitivity, accompanied by a worker with permanent activity, but who is constantly gripped by an existential doubt. In conclusion, the consultant or the researcher will have to recognise the creator's right to be wrong and surround him with a climate of confidence. This paper shows that there is a path where the one who talks to numbers (and does not have the skill of words) and those who possess the mastery of words actually meet. This paper is part of the PhD research entitled: Identifying and motivation of creative accounting practices the case of Romanian listed companies, carried out under the guidance of PhD Prof. Feleaga Liliana, research carried out within the framework of the Bucharest Academy of Economic Studies

CREATIVE ACCOUNTING PLAYERS AND THEIR GAINS AND LOSES

The aim of this paper is to bring into attention an interesting game of accounts manipulation and its playes. Their expectations represent the genesis point of manipulative behaviour and by understanding their actions and gains and losses we may create a link to undestanding the process of creative accounting thinking. The divergent interests of these users (e.g.managers, fiscal authorities and banks) derive from their position and power, and give rise to doubt regarding the objectivity of accountancy information provided by annual financial reports