Global Journal of Management and Business Research, D: Accounting and Auditing, Volume 22 Issue 2

ways although there is an excellent advanced system, problems may occur and even fall, It has global severe financial implications. The problem here is not one of a lack of compliance with accounting rules. instead, principles-based rules are followed, leading to non- transparent reporting, and taking advantage of specific accounting policies and legal gaps. The motivation for creative accounting practices varies. To maintain gains, positions, and advantages or beautify the financial position image, or to demonstrate efficiency or conceal a failure. Many studies have shown that fraudulent operations occur whenever the company wants or faces essential decisions. The motivations for creative accounting are limited to the following points (Khamqani, Siddiqui, 2019); 1. Tax evasion. It is one of the Department's main drivers for creative accounting, with the assistance of key owners and in collaboration with external auditors. 2. Achieving personal gains at the expense of all interest groups in the company and sometimes at the expense of the economy and society as a whole, as evidenced by the current financial crisis. 3. Meet the requirements: companies and their departments implement many legal requirements. d) Creative Accounting Practices Below is a presentation of the most criticalCreative accounting practices in the financial lists (Jabbar, 2017); Innovative accounting practices in the income list: the most important methods and methods used to manipulate the income list under creative accounting are: (Schilit, 2002:24); 1. Revenue registration in the form of speed when the sales operation is still in doubt: by the assets followed, the registration of income is completed after the completion of the exchange of utility and in this way, is recognized. 2. Fake Income Registration: This method is to record fictitious or fake revenue. 3. Increased revenue through a one-time return: This method consists of the management of a company increasing its revenue during a specified financial period through a one-time increase. These practices give a positive picture of the control of the establishment by increasing its revenues and profits at a time when it is performing poorly and is usually dealt with by indicating that it is the result of non- essential and unoccupied transactions. 4. Transfer of current banking to previous accounting periods, as this manipulation is related to the calculation of inventories. It is known that the banknotes arranged for the execution of works may lead to the realization of short-term benefits such as rentals, and salaries. And may lead to long-term benefits such as buildings and machinery whose long-term consumption is determined, At a time when the gift is realized. In some cases, some items of these assets become useless and are therefore registered as cash directly deducted from income. Creative accounting practices in the financial position list: The importance of the budget is linked to the information available about the nature and volume of resources available to the company and its obligations to lenders and owners. It also helps to predict the amounts and timing of future cash flows, as the benefits of the Financial Centre's list must be assessed in the light of a range of determinants. Creative accounting practices in the financial position list: 1. Substantial assets: When the valuation of tangible items of assets such as trademarks is overestimated, in addition to the accounting recognition of tangible assets, in contravention of the originals and the rules stipulated therein. 2. Fixed Assets: Where the principle of historical cost is not adhered to in the determination of the value included therein in the budget, such manipulation shall be carried out in the customary modernization ratios of the originals in such ways as to reduce them from 3. Traded investments: Market prices used to evaluate the portfolio of securities are manipulated in addition to unjustified reductions in the low price allocations. 4. Cash: This item is done without disclosure of restrictive cash items and manipulation of exchange rates used to translate available cash items from foreign currencies (Matar, 2019);. 5. Debts: This is manipulated through the non- disclosure of distressed debts, to reduce the amount of the questionable debt allocation and deliberately making errors in the classification of obligations from long-term classification. 6. Long-term investments: Change the accounting methods used to account for. Creative accounting methods in the list of cash flows: the list of cash flows presents all cash flows inward and out of exports and uses during a given period and aims to prepare this list. A presentation of creative accounting practices in the list of cash flows: 1. The accountant classifies operating expenses as investment expenses or funding and reversal expenses. These procedures and practices do not affect or alter the final values. 2. The establishment can also pay for capital development and record it as an outflow of cash, and therefore these practices increase. 3. This has the potential to manipulate operating cash flows to partially evade the payment of taxes. By making adjustments in operating cash flows, such as reducing gains in investment gains and some property rights, such as by comparison to 84 Global Journal of Management and Business Research Volume XXII Issue II Version I Year 2022 ( )D © 2022 Global Journals Research in Role of Creative Accounting Practices to Reduce Financial Risks in Jordanian Commercial Companies