Creative Accounting, Fraud and International Accounting Scandals [Hardcover]

Business scandals are always with us from the South Sea Bubble to Enron and Parmalat.? As accounting forms a central element of any business success or failure, the role of accounting is crucial in understanding business scandals. This book aims to explore the role of accounting, particularly creative accounting and fraud, in business scandals. The book is divided into three parts. In Part A the background and context of creative accounting and fraud is explored. Part? B?looks at a series of international accounting scandals and?Part? C?draws some themes and implications from the country studies.

List of Contributors xvii

Preface xxiii

Acknowledgements xxv

Part A 1

1 Introduction  Setting the Scene 3
Michael Jones

1.1 Introduction 3

1.2 Exploring the Terms 4

1.2.1 Creative Accounting 4

1.2.2 Fraud 7

1.2.3 Other Terms 9

1.3 Structure of the Book 11

1.3.1 Increase Income 12

1.3.2 Decrease Expenses 12

1.3.3 Increase Assets 12

1.3.4 Decrease Liabilities 12

1.4 Conclusion 18

2 The Creative Accounting and Fraud Environment 21
Michael Jones

2.1 Introduction 21

2.2 The Main Actors 22

2.2.1 Managers 22

2.2.2 Investment Analysts 24

2.2.3 Regulators 24

2.2.4 Auditors 25

2.2.5 Shareholders 26

2.2.6 Merchant Banks 26

2.2.7 Other Users 27

2.2.8 Legal Authorities 27

2.3 Effective Corporate Governance 28

2.3.1 Effectil³