creative accounting

Organizing and presenting company accounts in a way that, although desirable for the company concerned, relies on a liberal and unorthodox interpretation of general accountancy procedures.

The US government has used creative accounting methods to disguise the size of the budget deficit. One method was the application of surpluses from the Social Security trust fund to the operating budgets, thereby showing less of a deficit. Creative accounting measures are used by administrators and political leaders at all levels to show a desired result.