As our society is increasing complex, the ambiguity of situation in business transaction is increased. Thus, it is more and more important for accountant to concern ethics issue and to follow the accounting framework.

Not like the color of your eyes, ethics is not inherited from parents. It is acquired by learning after born. °Ethical reasoning, is not a matter of applying the appropriate algorithm to a situation and mechanically calculating the correct moral result. Ethical reasoning is more subtle, less precise, often more difficult.± (Damian & Stephen 1998, P2). Ethics determine the individual¯s judgment on value, creativity, happiness and sadness. But it does not exist independent, it relates to the customs, habits of life or traditions of a people. Ethics behavior in the society has the moral reflection of the normative standard.

Consider something ethically requires one to value the decision beyond his self-interest alone in reaching the decision. Also ethical judgment is universalized, it should be objective and without any biases or preferences. Besides, ethics is practical for action-guide. We can evaluate the people¯s behavior by prescriptive guidance.

There are four categories being creative accounting:

Thus, the impact of culture will have deep influence of people¯s thinking and behavior. Therefore influence the ethical judgment of professional accountants in different country. This unfamiliarity involves a strong element of concern about ethics.

Second, some future events can only be estimated judged and predicted. Like the useful life of an asset, or estimate the current years bad debt, we can only give a rough figure because it is future events. However, this gives the chance for creative accounting so as to get the desired financial figure.

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Approximate Word count = 1835
Approximate Pages = 7 (250 words per page double spaced)