... accounting thinking in the business sector wasstrongly dynamic in nature.2 The Finnish municipalities adopted the dynamicaccrual accounting model in their financial accounting reform in 1997, ... spending. In the casestudy, the opacity of the financial accounts was caused by the inclusion in the Finnish municipal accounting regulations of certain concepts that mislead ratherthan help the ... Publishing LtdCREATIVE ACCRUAL ACCOUNTING IN THE PUBLIC SECTOR 101on the subject, is ‘earnings management’, but such terms as ‘income smoothing’,‘earnings smoothing’, ‘financial engineering’,...