Creative Accounting Model in Iran's Environmental Conditions using Grounded Theory

Creative accounting relates to information engineering and financial reporting because it tries to make financial disclosures appear better than what is honestly stated. The aim of the current research is to provide a conceptual model of creative accounting in Iran's environmental conditions. In terms of methodology, this research is one of the qualitative research projects with an approach based on theorizing the context. The statistical population includes experts in the field of theoretical and practical foundations of creative accounting, After obtaining expert opinions through 21 semi-structured interviews during 2020-2021, the conceptual model of creative accounting includes causal conditions, including tax, banking, reporting and cultural incentives; The context of the subject, including managers' motivations, company goals and characteristics, legal loopholes, environmental pressures; Intervening conditions, including the way of monitoring and implementation; The central phenomenon includes a positive or negative view of the subject; Strategies including environmental and management factors, factors related to users, creating up-to-date technologies, improving quality and proper implementation of laws; And also their consequences including economic, social and organizational consequences are presented. The results showed that corporate governance and strengthening laws can reduce tax, banking, reporting and moral incentives leading to deviation from the facts. The necessary training should be given to the users and enforcers of the laws in the two dimensions of implementation and monitoring, so that its adverse consequences, including the unfair transfer of wealth, can be prevented and resources can be moved in the direction of national interests.