Český finanční a účetní časopis 2017(4):57-86 | DOI: 10.18267/j.cfuc.505

The Level of Creative Accounting in the Practice of Czech Accounting Entities

Mariana Peprníčková¹, Lucie Jandová²

¹ Vysoká škola ekonomická v Praze, Fakulta financí a účetnictví, katedra finančního účetnictví a auditingu, nám. W. Churchilla 4, 130 67 Praha 3.

² Deloitte Czech Republic, Karolinská 654/2, 186 00 Praha 8.

The paper provides overview of existing foreign research in creative accounting in practice over last five years and perform own research to evaluate form and level of use of creative accounting methods in practice in Czech Republic. The questionnaire survey focuses on accountants, controllers, financial managers and other financial professions. The survey shows that the most extensive application is a choice of the depreciation and valuation methods, use of estimated items and accruals, leases or provision of loans between related parties. In general, techniques focus more on items of income statement and cash flow and less on balance sheet items. The methods are most likely to be found in companies with a turnover more than CZK 5 billion, and least likely for service companies with a turnover up to CZK 200 million. 36% of respondents perceive creative accounting positively and 42% negatively.

Keywords: Creative Accounting; Adjustments to financial statements; Questionnaire survey

JEL classification: M41

Published: March 1, 2018  Show citation