Since the inception of the Financial Reporting Council in May 1990,
the Accounting Standards Board and the Financial Reporting Review
Panel have featured prominently in the financial press. Creative
Accounting questions whether the new regime is likely to improve
financial reporting practices in the United Kingdom. Do financial
statements contain useful information? Is the new profit and loss
account a reliable measure of financial performance? What
significance should be attached to the balance sheet and the
gearing ratio? Are UK companies guilty of using financial
techniques to improve their reported results? Does the stock market
pay any attention to company financial statements? Is there such a
thing as creative accounting? What is the role of the auditor? Will
the recommendations of the Cadbury Committee help to restore public
confidence in financial reporting? In addressing these issues,
Creative Accounting highlights the complexities and limitations of
company financial statements. It is essential reading for all users
of these statements.
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