Abstract'Creative accounting' involves accountants in making accounting policy choices or manipulating transactions in such a way as to give the impression in the accounts that they prefer. While regarded as unethical by most observers, a defence of creative accounting can be based on the ability of the users of accounts to identify bias in accounting policy choices and make appropriate adjustments.In this paper we take the example of the Barcelona Football Club where the club management made three key accounting policy choices that presented a favourable position, and a supporters' club presented an alternative report choosing three alternative accounting policies that presented an unfavourable position. We presented each of these financial reports to one of two groups of Spanish bank loan offices, with supporting notes making the impact of the accounting policy choices clear. We found that the more favourable set of accounts was significantly more likely to attract a positive response to a loan request.This result undermines the defence for creative accounting, based on the ability of users to identify manipulation.

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Ast othe remainingscopef ordatabaseright itisclear thatthosewho make databaseswillnowneed tostructuretheirbusiness very carefullyin ordertoavoid inad-vertentlyfailing toavail themselvesof the database right.Otherwise,suchi nterests mightr unthe riskthat the largertheirdatabasethe greaterthe degree of copying whichmaybeallowed.Itis,therefore,alogicalconsequenceofthe newECJcaselawthat"databasemakers willrespond tothe decisionsbydevisinglegaland economicstrategiestogetaround it." 38 38 Davison &Hugenholtz,[2005]EIPR 113at118. Inthe wake of scandalsatcompanieslike Enron and Worldcom,the U.S.authoritiessoughttorestoreconfidenceinthe financialstatements of U.S.publiccompanies.The U.S.Sarbanes-OxleyActof 2002 ("SOX") and related U.S.rulesnowr equireU.S.companiest o adoptcodesof ethicalconduct.SOXalsodemandsthat companieshavecontrol systemsin placeand establish proceduresforthe confidential,anonymous submission byemployeesof concernsr egarding possible misconduct.Ino rdert ocomplyw iththeserequirements U.S. companiesarei mplementing" whistle-blowing" systems,in most casesas anonymous telephoneh otlines. TworecentdecisionsbyCNIL in Franceand the Wup-pertalLabour Court in Germanyhaveh eldsuchh otlinesasu nlawfulundercertain circumstancesand are causingconcernformanymultinationalpubliccompaniesand IT providers who offerwhistle-blowing solutions.Thisarticle analysest he currentlegalstatus in Germany,Franceand the UK and triestoofferinterim guidanceonstepscompaniesmayw ishtoconsidert o minimisethe risksin E.U.countrieswhile stillcomplying withSOX.