Programme Outline

Day 1

Module 1 – Understanding the Basics and Psychology of Creative accounting

I. Definition of Creative accounting
               a. Understanding the true meaning of Creative Accounting
               b. The link of Creative accounting to Financial Reporting Standards
               c. Is Creative accounting legal?
II. Why commit Creative Accounting?
               a. The Psychology of the Offenders
               b. The Purpose of Creative Accounting
               c. Who is behind of all this Creative Accounting
III. Where to look for creative accounting
               a. Linking Creative Accounting to Financial Ratios
               b. From Financial ratios to Financial Statements
               c. From Financial Statements to Financial Numbers

Class exercise: Each team is given a scenario and based on scenario, team has to decide which financial ratio to improve and link to financial statements. Team must present the financial numbers that they need to apply creative accounting

Module 2 – Creative Accounting in Profit and Loss Account

I. Increase the Profits
               a. Increase Revenue
               b. Reduce Expenses
               c. Assets valuation

Quick exercise: Discuss and present ways you can increase profits

Examples demonstrating a before and after effect with every creative accounting method

II. Reduce profits
              a. Reduce Revenue
              b. Increase Expenses

Quick Exercise: Discuss and present ways you can reduce profits

Examples demonstrating a before and after effect with every creative accounting method

Class exercise: A case study is given with instructions to participants to identify creative accounting in profit and loss

Day 2

Module 3 – Creative Accounting in Balance Sheet

I. Increase Fixed Assets Value
II. Reduce Liabilities
III. Increase Working Capital
IV. Increase Equity

Quick exercise: Teams discuss and list possible ways to improve Balance Sheet with Creative Accounting

Examples demonstrating a before and after effect with every creative accounting method

Class exercise: A case study is given with instructions to participants to identify creative accounting in Balance Sheet

Module 4 – Creative Accounting through Group Accounts

I. How Consolidation methods can impact Group results
II. Treatment of certain eliminations
III. Intercompany transactions

Examples demonstrating a before and after effect with every creative accounting method

Module 5 – Using Creative Accounting knowledge to your advantage

I. How Creative accounting can affect your decision
II. How to improve your diagnostics for creative accounting
III. Reflection on Understanding in Creative accounting
 

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