Abstract

The aim of this study is to identify the impact of creative accounting methods on financial reports and statements in commercial banks listed on Amman Stock Exchange. Thus, in order to achieve this goal, the study utilized the descriptive analytical approach for its suitability to the nature of the study, also, the questionnaire was used as an assessment tool for this study. Meanwhile, among the most important findings of the study is that earnings management operations include many means and methods aimed at achieving specific purposes serving the management. Additionally, that commercial banks have practiced earnings management and creative accounting operations to a large extent during the financial years covered by the study period. And that the banking management is not aware of the impacts resulting from the operations of practicing fraudulent accounting and earnings management on the financial reports and statements, which greatly affects the reliability of the financial statements, makes them misleading and loses their quality, objectivity and credibility, therefore, affects the decisions of those statements’ users. The study has recommended the need to activate the governmental supervisory role as well as the audit committees in banks to limit the banks' practice of earnings management and creative accounting for the purpose of achieving the best degree of accounting information's quality and to provide it with each of trust and suitability, as well as the need to increase the effectiveness of the professional organization of accounting and auditing profession in Jordan. Also, to take the necessary measures to develop and enhance the competencies of its members, especially those who undertake auditing operations of banks' accounts to reveal earnings management and creative accounting operations and then working on reduce them. Besides, the necessity to expedite the activation of the governance rules' implementation, provided that it includes imposing penalties on the management of banks that practice creative accounting operations for the purpose of giving the published financial statements for these banks in the financial market each of confidence and objectivity.