Definitions for "Creative accounting"
A form of accounting which, while complying with all regulations, nevertheless gives a biased (generally favourable) impression of a company's performance.
A questionable! means of making a companies figures appear more (or less) appealing to shareholders etc. An example is 'branding' where the 'value' of a brand name is added to intangible assets which increases shareholders funds (and therefore decreases the gearing ). Capitalizing expenses is another method (ie. moving them to the assets section rather than declaring them in the Profit & Loss account).
Since many of the things that accountants measure are subject to interpretation, it is possible to put a more (or less) favourable tint on a company’s accounts by being creative with that interpretation.