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Creative Accounting, An Expression Of The Disconnection Between Accounting And Taxation


  • Adrian Grosanu

    (Babes-Bolyai University of Cluj-Napoca Romania)

  • Paula Ramona Rachisan

    (Babes-Bolyai University of Cluj-Napoca Romania)

  • Sorin Romulus Berinde

    (Babes-Bolyai University of Cluj-Napoca Romania)


In the context of a developed capital market, the dimensioning of the accountingprofit is very important for investors, considering the financing of the economic entities to ahigher degree than that offered by the banking system. We intend to emphasize some risks thatappear from the perspective of creative accountancy (an expression of the disconnectionbetween accountancy and taxation). The risks consist in some less ethical tendencies ofartificially oversizing and undersizing the accounting and the tax profit according to certainobjectives, risks that can be controlled through a better activity of accounting regulations. Wecan say that the accounting result can be influenced in the case of a taxation connected ratio.On the other hand, the accounting result is subject to an increasing risk due to the creativeaccounting. Under these circumstances, a question appears: Which risk is better to beassumed taking into account the dimension of the accounting result?

Suggested Citation

  • Adrian Grosanu & Paula Ramona Rachisan & Sorin Romulus Berinde, 2012. "Creative Accounting, An Expression Of The Disconnection Between Accounting And Taxation," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 1(14), pages 1-5.
  • Handle: RePEc:alu:journl:v:1:y:2012:i:14:p:5

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    References listed on IDEAS

    1. Ion Ionas¸cu & Mihaela Ionas¸cu & Lavinia Olimid & Daniela Artemisa Calu, 2007. "An Empirical Evaluation of the Costs of Harmonizing Romanian Accounting with International Regulations (EU Directives and IAS/IFRS)," Accounting in Europe, Taylor & Francis Journals, vol. 4(2), pages 169-206, December.
    2. Christopher Nobes & Hans Robert Schwencke, 2006. "Modelling the links between tax and financial reporting: A longitudinal examination of norway over 30 years up to IFRS adoption," European Accounting Review, Taylor & Francis Journals, vol. 15(1), pages 63-87.
    3. N. King & A. Beattie & A. -M. Cristescu & P. Weetman, 2001. "Developing accounting and audit in a transition economy: the Romanian experience," European Accounting Review, Taylor & Francis Journals, vol. 10(1), pages 149-171.
    4. Ester Oliveras & Xavier Puig, 2005. "The Changing Relationship between Tax and Financial Reporting in Spain," Accounting in Europe, Taylor & Francis Journals, vol. 2(1), pages 195-207, January.
    5. Graham, John R. & Raedy, Jana S. & Shackelford, Douglas A., 2012. "Research in accounting for income taxes," Journal of Accounting and Economics, Elsevier, vol. 53(1), pages 412-434.
    6. Oriol Amat, 1993. "The relationship between tax regulations and financial accounting: A comparison of Germany, Spain and the United Kingdom," Economics Working Papers 46, Department of Economics and Business, Universitat Pompeu Fabra.
    7. Adela Deaconu, 2012. "Accounting models and influential factors in post-communist Romania," International Journal of Critical Accounting, Inderscience Enterprises Ltd, vol. 4(2), pages 194-216.
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    Cited by:

    1. Cristina Boța-Avram, 2013. "Effects Of Governance On Corporate Ethics: A Cross-Country Investigation," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 16(50), pages 3-26, December.

    More about this item


    Financial Regulations; Accounting Result; Investors; True and Fair Value; Risks;

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting


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