Creative accounting and the IASB conceptual framework – a futile relationship?

Creative accounting, a term first introduced by Ian Griffiths (1986), is commonly defined in the UK as “a form of accounting which, while complying with all regulations, nevertheless gives a biased impression (generally favourable) of the company’s performance” (CIMA, 2000 cited by Jones, 2011). However, this definition is very narrow in comparison to others such […]

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Liquidity v Profitability: sink or swim?

A brief discussion about the importance of recognising the distinction between profitability and liquidity, detailing the factors of risk associated with both, and measures which can be taken to help balance these, with particular emphasis on the Miller-Orr Model.

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