The Use of Accounting Judgement in the Application of Creative Accounting Policies and Practices


  • Alice Mariana Preda (Simion) Valahia University Târgoviște
  • Gabriela Mangu (Giurea) Valahia University Târgoviște
  • Monica Adriana Tegledi Valahia University Târgoviște


professional judgment; creative accounting; financial position; financial performance; financial indicators


Creative accounting emerged at the beginning of the last century in the economies of Anglo-Saxon countries to respond to the increasingly varied requirements of users of accounting information in the context of the growing complexity of economic reality. Financial interests and business pressures have led to the use of specific policies and treatments by accounting professionals to cosmetise financial statements and thus, at the limit of legality, to provide accounting information consumers with the "truth" they want. In order to present the information users want, accounting professionals draw on their specialist knowledge, accumulated experience and professional judgement, thus demonstrating their skill and expertise in handling 'figures'. This paper aims to present the role of professional judgement in the emergence and development of creative accounting in contemporary society. In this regard, it will analyse how professional judgement is used to obtain relevant information on the financial position and performance of the economic entity, premises, techniques and methods of creative accounting, all accompanied by case studies on the evaluation of financial indicators using creative accounting techniques and methods and the impact of creative methods on the decisions of users of accounting information, especially in the process of evaluating annual financial indicators.


Naser, K. 1993, Creative financial accounting: its nature and use, Hemel Hempstead: Prentice Hall, London.

Colasse B., (1997), General Accounting, 4th edition, translation by lecturer Neculai Tabără, Moldova Publishing House.

Giot, H. & Malo, L., 1995, L’elasticite du resultat selon les dimension temps and escape, Congres de l’Association Francaise de Comptabilite.

Stolowy H., (2000), Comptabilité créative, Encyclopédie de Comptabilité, Contrôle de Gestion et Audit (sub îndrumarea lui Colasse B.), Economica, Paris.

McEnroe J.E., (2007), Individual Investorsʼ Perceptions Involving the Quality and Usefulness of Audited Financial Statements, Advances in Public Interest Accounting, Vol. 13.

Beneish M.D., (1999), The Detection of Earnings Manipulation, Financial Analysts Journal 55, No. 5.

Feleagă N., (1996), Accounting controversies, conceptual difficulties and the credibility of accounting, Economic Publishing House, Bucharest.

Malciu L., (1999), Creative Accounting, Economic Publishing House, Bucharest.

Feleagă N., Malciu L., (2002), Accounting Policies and Options (Fair Accounting versus Bad Accounting), Economic Publishing House, Bucharest.

Diaconu P., (2004), How do accountants make money? Tax evasion, tax havens, creative accounting, Economic Publishing House, Bucharest.

Munteanu V., Zuca M., (2011), Considerations on the use of creative accounting in distorting information in financial statements and "maximizing" firm performance, Financial Audit Magazine, Year IX, No. 3.

Groșanu A., (2013), Creative Accounting, Advanced Postdoctoral Research in Economics Collection, ASE Publishing House, Bucharest.

Dumitrescu A.S., (2014), Creative accounting - from idea to money. With practical examples, Economic Publishing House, Bucharest.

Robu I. B., Robu M. A., (2013), Audit procedures for estimating fraud risk based on indices for detecting accounting manipulations" Journal of Financial Audit, No. 10.

Cucui, I. (2006) "The impact of international and national accounting harmonization and standardization processes on the types of communication available to an organization's management", Annales Universitatis Apulensis, Series Oeconomica, Alba Iulia, No. 8/2006, Vol. I, available: upload/lucrari/820061/8.pdf.

Apostol C., Diagnostic analysis of the financial health of the enterprise based on the balance, Iasi, 2010, p.37.

Petriș, R., Harmonization and Convergence of Romanian Accounting, Annals of "Ștefan cel Mare" University, Suceava, 2005.

Dinga, E., Theoretical considerations on tax evasion vs. tax fraud, Financial Studies - Theoretical Approaches and Modelling, No. 4, 2008.

Ionescu, C., Accounting facing the challenges of financial engineering, Theoretical and Applied Economics, No. 5, 2006.

Levitt, A., ‘The Numbers Game’, Speech at New York University, 28.09.1998.

IASB (2015), International Financial Reporting Standards (IFRS) Official regulations issued from January 1, 2015, CECCAR, Bucharest.

Jaba, E., Robu, I.B., Robu, M.A. (2014.b), "Increasing the accuracy of accounting misstatement estimates based on the use of stratified sampling", Financial Audit Journal, 05/2014; 12(113):18-29.

IAS 2, paragraph 8.

IAS 23, paragraph 4.

IAS 16, paragraph 23 and 48

Cernușca L., David D., Nicolaescu C., Gomoi B. C., Empirical study on the creative accounting phenomenon, Studia Universitatis ―Vasile Goldiș Arad. Economics Series Vol 26 Issue 2/2016, Pages 63 – 87.

Horomnea, E., Pascu, A.-M., Istrate, A.-M., Creative Accounting between Uninspired Name, Reglementation and Fraud, Audit Financiar Volume: 10, No. 86/2012.

Giot, H. & Malo, L., L’elasticite du resultat selon les dimension temps and escape, Congresde l’Association Francaise de Comptabilite, 1995

Mardiros, D.N., Dicu, R.M., Grosu, M., 2015, Dimensions of the Social Responsibility of the Auditor, in the Practice of Creative Accounting, Audit financiar, XIII, Nr. 12(132)/2015, 35-43.

Naser, K. (1993). Creative financial accounting: it's nature and use, Hemel Hempstead: Prentice Hall.

Tabără, N. & Rusu, A., Considerations Concerning the Impact of Creative Accounting on the Quality of the Information Presented in the Annual Financial Statements, Audit 204 Financiar, vol. IX, Issue 83/2011, p. 37-44.

Mulford, C.W. and Comiskey, E.E. (2002), The financial numbers game: detecting creative accounting practices. New York: Wiley.

Comandaru, A. M. A., Stanescu, S. G., Toma, C. M., & Păduraru (Horaicu) Adriana, 2020, Another image of accounting-creative accounting. Global Journal of Business, Economics and Management: Current Issues 10, No. 2: 100–110. Accessed October 14, 2022.

Schiff, D., The Dangers of Creative Accounting Worth, 1993.

Smith, T., Accounting for growth, Century Business, London, 1992.

Firescu, V., An Empirical Study on the Impact of Creative Accounting Policies on the Performance of Listed Romanian Companies, Valahian Journal of Economic Studies, Volume 5 (19), Issue 4, 2014.

O.M.F.P. No. 3055, for the approval of the Accounting Regulations in compliance with the European Directives, published in the Official Gazette, Part I, no.766 of 29 October 2009, item 259, paragraph 1. (1) - (2).

O.M.F.P. No. 1802 of 29 December 2014 - Part I approving the Accounting Regulations on individual annual financial statements and consolidated annual financial statements, published in the Official Gazette no. 963 of 30 December 2014, updated in 2022.




How to Cite

Preda (Simion) , A. M., Mangu (Giurea), G., & Tegledi, M. A. (2022). The Use of Accounting Judgement in the Application of Creative Accounting Policies and Practices. Acta Universitatis Danubius. Œconomica, 18(6). Retrieved from



Business Administration and Business Economics