Exploitation of loopholes in financial regulation in order to gain advantage.

1. Creative accounting…
When its too good to be true.

2. Lets talk about business…

3. Now here is the interesting part…a solution.
We talking about…
CREATIVE ACCOUNTING

4. Now the question is what is creative accounting ?

5. By going the definition wise:

6. But well in layman’s terms,
Creative accounting is a
systematic
misinterpretation of true
income and assets.

7. That is…
Just kidding…

8. The question
comes,
Why do we
need this ?
Is it helpful ?
Is it fair?

9. Well here is the solution…
This policy fades off all the
problems like:
• Finances
• Taxes
• Bookkeeping
• IRS representations

10. What is the Objectives of creative accounting…
Why do we need this manipulation?

11. Profit related pay:
It is used to motivate the employee to
increase the annual profit.

12. Managerial motivation:
Manager usually use this to boost
company’s profit.

13. Now on employee’s side,
It is used when the target cannot be
achieved.

14. Shares and shares:
Employee get an option to own a share and
become an owner.
Employee becomes more loyal and motivated.

15. Skill is better than strength,
Everything
needs a skill
and a
techniques to
master it.

16. Here are some techniques of creative
accounting…

17. Make over / under valuation of closing stock.

18. Charge all the expenses in one bad year.

19. Enter artificial transactions.

20. Manipulate news release.

21. Charge an expenses as an asset or vice versa.

22. Now here is a
short summary
of companies
with nature of
creativity
used…

23. HealthSouth corporation.(2003)
Overstated income ,
overstated revenues by
as much as 4700
percent.

24. Kanebo Japan. (2003)
Over a period of
five years ,using
creative tactics the
profit was inflated
by $2 million.

25. Waste management Inc.(2002)
Understated expense
on the company’s
property and
equipment and thus
income was inflated
by $1.7 million.

26. What about risks and frauds…

27. There are many studies that have
investigated in this topic.
They are roughly categorized to DISCRIPTIVE
(i.e. theoretical) and STATISTICAL studies.

28. Well lets hop on conclusion…

29. Here comes the cool part…

30. Well creative accounting is a type of small business
just like yours, it grows with you in this big world
surrounded by big firms.

31. So creative accounting is the real
deal.
A full package to provide you with arsenal
of tricks they have up its sleeves.

32. Finally creative accounting are the…
number crunchers,
money savers ,
help your business grow team .

33. Thank you