scholarly journals Could globally used Beneish M-score predict the manipulation of the accounting statements in the Slovak republic?

2021 ◽  
Vol 129 ◽  
pp. 03037
Author(s):  
Katarina Zvarikova ◽  
Erika Kovalova
Keyword(s):  
Slovak Republic ◽  
Value Added ◽  
Economic Crime ◽  
Accounting Fraud ◽  
Huge Number ◽  
Detection Ability ◽  
Creative Accounting ◽  
Key Factor ◽  
Score Model ◽  
Local Companies

Research background: Globalization is characteristic by many companies which are doing their business worldwide in various tax policies, so they are able to use the possibilities of creative accounting for their own benefit. And although the term creative accounting is concerned mainly with multinational companies, it is not an unknown technique also for local companies. Purpose of the article: The PwC’s Global Economic Crime and Fraud Survey proved that economic crime is constantly evolving worldwide. At present, there is a huge number of frauds, which include corruption, misappropriation of assets, or fraudulent reporting. These papers are focused only on accounting fraud and creative accounting as the way to adjust accounting books and reports. Methods: The aim of the papers is to analyse the detection ability of the Beneish M-score model in the specific condition of the Slovak republic. These specific conditions consider tax minimization as the key factor for creative accounting implementation. The analysis was made with a Slovak company that was legally convicted of intentional manipulation of the accounting statements. Findings & Value added: The consideration of the specific condition in M-score for Slovak republic showed the best detection ability to reveal the frauds. As our study reveals, reduced M – score5 was unreliable in the condition of the Slovak republic and although Beneish consider 3 indicators as redundant it seems that in the condition of the Slovak republic it is important to carefully consider their implementation.

scholarly journals Creative accounting as a global tool for tax optimization

2021 ◽  
Vol 92 ◽  
pp. 02007
Author(s):  
Roman Blazek
Keyword(s):  
Slovak Republic ◽  
Value Added ◽  
Financial Statements ◽  
The Other ◽  
Analytical Models ◽  
Creative Activity ◽  
Economic Activities ◽  
Business Partners ◽  
Creative Accounting ◽  
State Administration

Research background: Creative accounting is a set of skills that allow people to produce an artistic, scientific or other creative activity that creates new, unusual and acceptable ideas, which are transformed into financial statements, which then form a positive view of the company’s economic activities. Purpose of the article: Creative accounting is a problem all over the world, as it adversely affects the financial statements in each country. The article describes models that help reveal the creativity of accountants and financiers. Procedures for identifying possible accounting delays are based on analytical models. In particular, it is complex statistical methods or data collection techniques that identify hidden, unusual patterns that indicate fraud. These analytical models are therefore used to detect various errors and fraud in accounting. Methods: Analytical models will be available to identify different methods of accounting abuse. Interest is placed on the analytical models of Beneish model and the Modified Jones model. The main objective of using these models is to reveal creative accounting in sector A - Agriculture, forestry and fishing. Fraud is investigated using sophisticated analytical methods that reveal improved data. Findings & Value added: Creative accounting in the conditions of the Slovak Republic but also globally is still not possible completely to reveal. The value added of this article can be mentioned as the benefit for potential business partners as well as investors interested in the analysed sector and the other hand for the other for the state administration.

scholarly journals Propensity to use global solutions of creative and aggressive accounting - in the light of accountants’ opinions

2021 ◽  
Vol 129 ◽  
pp. 03030
Author(s):  
Aleksandra Szewieczek ◽  
Patrycja Ostrowska
Keyword(s):  
Survey Methods ◽  
Value Added ◽  
Global Solutions ◽  
Research Field ◽  
Economic Crime ◽  
Accounting Students ◽  
Job Knowledge ◽  
Creative Accounting ◽  
Accounting Professionals ◽  
Aggressive Accounting

Research background: The processes of globalization contributed to the unification of accounting principles through their standardization and harmonization. However, there is rapid and frequent permeation of innovative and complex transactions and as a result, the area and scale of implementation of creative and aggressive accounting practices are increasing. There is also a new issue of forensic audit, whose task is to prevent economic crime by mainly detecting financial crime and fraud. A research field that requires deepening is the analysis of the perception, understanding, and propensity of accountants to adopt creative and aggressive accounting solutions and their attitude toward forensic audit. Purpose of the article: The main purpose is to analyze the degree of knowledge and adoption of internationally known creative and aggressive accounting solutions and to investigate the propensity of people involved in accounting to commit fraud. Methods: The article employed survey methods and techniques (within an accounting students’ group and among accounting professionals) as well as literature analysis, synthesis, and inference. Findings & Value added: The results indicate that the degree of knowledge of creative accounting is the highest among the issues considered. The most important factors influencing the propensity to commit fraud are pressures caused by third parties (in particular superiors), financial benefits, and the fear of losing a job. Knowledge of the issues of forensic audit is low. It is necessary to conduct promotional activities to increase awareness of the issues studied and to shape appropriate ethical attitudes among accounting professionals.

scholarly journals Creative accounting in a global business environment

2021 ◽  
Vol 92 ◽  
pp. 02003
Author(s):  
Armenia Androniceanu ◽  
Lenka Strakova
Keyword(s):  
Graphical Representation ◽  
Balance Sheet ◽  
Accounting Information ◽  
Value Added ◽  
Financial Statements ◽  
Business Environment ◽  
Accounting Fraud ◽  
Global Business ◽  
Window Dressing ◽  
Creative Accounting

Research background: The main essence of financial statements is a true and fair view of accounting because accounting information is an essential source of information about the company. A global business environment that provides scope for selecting existing accounting practices, different techniques, or different methods used in reporting may appear to be beneficial to the business and its accounting. Breach of the accounting principle of a true and fair view of the accounts through the intentional implementation of accounting errors or accounting fraud committed by responsible employees increases information asymmetry between creators and users of accounting information. Purpose of the article: The paper aims to point out the use of creative accounting in companies existing in the global business environment using a graphical representation of accounting cases using creative accounting techniques, namely Window dressing techniques, and Off-balance sheet techniques. Methods: In the paper is used the method of description and the comparison method based on which we compare entity that prepares the accountant statements in two variants A and B by using window dressing techniques and off-balance sheet techniques. The achieved results are presented in this paper using a graphical representation. Findings & Value added: Through the use of creative accounting techniques such as Window dressing techniques and Off-balance sheet techniques, our goal is to point out the possible manipulation of the company’s financial statements by performing accounting cases in terms of maximization variant (A) and minimization variant (B).

scholarly journals Altman Model Verification Using a Multi-Criteria Approach for Slovakian Agricultural Enterprises

2021 ◽  
Vol 24 (1) ◽  
pp. 146-164
Author(s):  
Roman Vavrek ◽  
Petra Gundová ◽  
Ivana Kravčáková Vozárová ◽  
Rastislav Kotulič
Keyword(s):  
Slovak Republic ◽  
Economic Value ◽  
Value Added ◽  
Model Verification ◽  
Economic Value Added ◽  
Z Score ◽  
Natural Conditions ◽  
Agricultural Enterprises ◽  
Overall Reliability ◽  
Altman Model

The Altman model is still one of the most widely used predictive models in the 21st century, and it aims to highlight the differences between bankrupt and healthy enterprises. This model has been modified several times; its most well-known forms are from 1968, 1983 and 1995. However, the use of the Altman Z-score for Slovak enterprises is more than questionable. The unsuitability of the model for the conditions of Slovak companies has been confirmed by several empirical surveys. The objective of this study was to verify the validation of these three variants of the Altman model, depending on how an unprosperous company is identified, using a sample of 996 agricultural enterprises operating in the Slovak Republic. Four indicators were selected for the identification of an unprosperous enterprise – economic results, total liquidity, equity, and economic value added – and they were monitored over the last year or, as the case may be, over the last three years from 2014 to 2016. Using the Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) and Coefficient of variation (CV) methods as an objective method for weight determination, a combination of the Altman model from 1968 and the negative total liquidity in the last reference year was determined to be the best. One of our main findings is that the way in which an unprosperous enterprise is identified is a significant factor affecting the overall reliability of the Altman model. The Altman model from 1968 and 1983 confirmed the differences resulting from the natural conditions in which the enterprises operate. The economic results and economic value added (EVA) proved to be inappropriate as indicators for defining an unprosperous enterprise in the conditions of the Slovak Republic.

scholarly journals The proposal of taxation of international passenger transport with respect to the including into the travel services

2012 ◽  
Vol 60 (4) ◽  
pp. 299-306
Author(s):  
Milena Otavová ◽  
Veronika Sobotková
Keyword(s):  
Comparative Analysis ◽  
Slovak Republic ◽  
Value Added ◽  
Individual Member ◽  
Passenger Transport ◽  
Value Added Tax ◽  
Member States ◽  
Transport Services ◽  
Council Directive ◽  
Travel Services

Generally, international passenger transport is exempt from the value added tax, in the case of air transport. International road passenger transport is however liable to taxation. However, the Council Directive on Value Added Tax contains a number of variations in the frame of the taxation of international passenger transport both for the states that joined the Community after January 1, 1978 and also for countries that were members of the Community on January 1, 1978. The international passenger transport is therefore rather problematic field due to a number of exceptions for individual Member States. It is on the providers or recipients of transport services to inform correctly about the taxation of international road transport and to pay properly the tax. The aim of the article is to evaluate the possibilities of the taxation of international passenger transport in the Czech Republic, Austria, Slovak Republic, Germany and Poland and to determine how the taxation of international passenger transport affects the tax liability and price of travel services provided in this country. From the comparative analysis it is evident that the tax paid abroad should be included in the total price of the purchased service. Based on the comparative analysis there will be a proposal for the taxation of international passenger transport so that the tax collection in the monitored countries would be simplified. The proposal recommends to unify an approach during the taxation of international passenger transport for all Member States of the European Union in order to reduce administrative costs on the part of the governments and individual entities.

scholarly journals IMPACT OF THE VAT REVERSE-CHARGE MECHANISM ON THE CASH FLOWS OF CONSTRUCTION COMPANIES IN THE SLOVAK REPUBLIC

2018 ◽  
Vol 6 ◽  
pp. 522-528
Author(s):  
Angelika Kútna ◽  
Norbert Gyurián ◽  
Zoltán Šeben
Keyword(s):  
Slovak Republic ◽  
Financial Burden ◽  
Value Added ◽  
Cash Flows ◽  
Business Environment ◽  
Value Added Tax ◽  
Construction Companies ◽  
Study Results ◽  
The Law ◽  
Reverse Charge

In 2015, the Slovak Parliament adopted the Law on Amendments to the Law on Value-Added Tax. This law came into force on January 1, 2016. One of the most significant changes was the introduction of a reverse-charge for the provision of construction works. A government statement of its positive influence on the business environment is inconsistent with the two-year experience in the building sector. The main goal of this paper is to establish the reason for the practical effects of the value-added tax reverse-charge mechanism on the construction companies. The hypothesis is that the negative effect on the cash flows of the construction companies increases ‘opportunity costs’ connected to excessive deductions. The paper focuses on evaluating and quantifying such an effect. It presents a comparison of the conditions before and after the adoption of the Act. No. 222/2004 Coll., as amended in 2016 and includes factors that influence costs and cash flows of construction companies. It but does not consider factors related to turnover and the economic situation.  The reverse-charge mechanism affects the total of tax owing, the total deductible tax, the total excessive deduction, and the construction companies’ cash flows. In this study, the data from the information system of the Slovak Republic, under the condition of anonymity, are analyzed for the period 2014–2017. The effect of the value-added tax is quantified by way of financial interest expenses. These expenses depend on time limits for the excessive deduction, total of tax owing, and on the excessive deduction amount. Indicators of ‘Financial Burden 1’ and ‘Financial Burden 2’ are calculated. The results show that the Law on Amendments of Value Added Tax has significantly affected the constructions companies since January 2016. The reverse-charge system has not changed the delay in excessive deduction payments to the taxpayer’s bank account. It has changed the amount of excessive deduction expressed through money and the total tax owing. Based on the study results, this change markedly affects the financial burden of construction companies and provides an ‘opportunity cost’ Value Added Tax payers‘ construction company.

scholarly journals Development and Role of the Subsistence Minimum in the Payrolls Legislation in Slovakia from year 1993

2021 ◽  
Vol 129 ◽  
pp. 09011
Author(s):  
Zuzana Kubaščíková ◽  
Zuzana Juhaszová ◽  
Miloš Tumpach ◽  
Renáta Stanley
Keyword(s):  
Slovak Republic ◽  
Value Added ◽  
Subsistence Level ◽  
Tax Base ◽  
National Regulation ◽  
Subsistence Minimum ◽  
History Of ◽  
Constructive Criticism ◽  
The Given

Research background: The subsistence minimum category is used in the Slovak Republic in determining several wage and tax categories. In this paper I analyze whether the set standard of living is sufficient with regard to the development of the average wage since 1993 to the present day. Subsequently, the quantities that are based on the subsistence level - non-taxable amounts of the taxpayers’ tax base are also analyzed. The results of the analysis show that the distance between the subsistence level and the level of non-taxable parts has gradually increased. The topic of payrolls and related wage variables is a complex and ever-changing topic. Not many authors in Slovakia pay attention to it, and due to constant changes in the given area, the findings of publications and papers is also limited. Purpose of the article: This paper deals with general theoretical, legal and historical starting points and links between non-taxable parts and the subsistence minimum. The paper presents a cross-section of the history of the application of non-taxable parts in the Slovak Republic. Methods: The method used in the paper is that of hypotheses determination and testing. Findings & Value added: This paper also analyzes the state of national regulation and development trends in the area. In addition to constructive criticism, the article also contains suggestions for improving the current situation.

scholarly journals The impact of globalization in connection with the development of e-commerce

2021 ◽  
Vol 129 ◽  
pp. 06007
Author(s):  
Eva Nahalková Tesárová ◽  
Anna Križanová
Keyword(s):  
Slovak Republic ◽  
Value Added ◽  
Developed Countries ◽  
Financial Fraud ◽  
Sensitive Data ◽  
Negative Experience ◽  
Business Partners ◽  
Basic Purpose ◽  
Questionnaire Method ◽  
The Impact

Research background: Globalization encourages increased involvement of retailers, and the market currently provides these entities with a new range of purchasing functions. The new economy is based primarily on information and knowledge, so the key to success is the ability to constantly improve and respond to changing market conditions and increasing customer requirements. The Internet thus becomes an integral part of our lives. It is a tool that makes our lives better. The expansion of the global information network Internet has created space for a new kind of business. It brings benefits to all e-commerce entities. For this reason, its popularity is growing exponentially. The negative experience caused by financial fraud, misuse of sensitive data, the unreliability of business partners, and the like is also growing. Purpose of the article: The basic purpose of the article is the fact that the development of e-commerce is one of the important conditions for maintaining and increasing the competitiveness of the Slovak economy and its ability to participate in the international division of labor with the economically developed countries. Methods: The basic pillar of the article was to analyze the current development of e-commerce in the Slovak Republic, which is affected by the pandemic situation caused by COVID-19, make a comparison with EU countries, and evaluate the perception of e-commerce by Slovak consumers based on a questionnaire survey. Findings & Value added: Finally, we interpret the answers of the respondents, which were obtained by the questionnaire method.

scholarly journals Internal Marketing Communication of the Global Company in Slovak Republic

2021 ◽  
Vol 129 ◽  
pp. 02011
Author(s):  
Jakub Michulek
Keyword(s):  
Swot Analysis ◽  
Slovak Republic ◽  
Value Added ◽  
Internal Marketing ◽  
Internal Communication ◽  
Added Value ◽  
Marketing Communication ◽  
Career Growth ◽  
High Level ◽  
Global Company

Research background: Currently, it is constantly increasing emphasis on the satisfaction of employees in the company. One way to satisfy them through internal marketing communication. Set them training according to their needs and interests and allow them to grow their career growth. It is also the provision of information on time at the required range and especially to be up to date. As a result, employees can perform their work efficiently and work to achieve the required result that the enterprise expects. It is necessary for this internal communication in the company took place both directions for many companies. It follows that finance inserted into education of employees; it will return to a business in an even greater range. Purpose of the article: The aim of this research is to analyses the use of the tools of the communication mix in the field of internal marketing communication of the selected company. Methods: SWOT analysis, Deduction, Comparison. Findings & Value added: Internal marketing communication in chosen company is on high level, according to analyzing tools and results of SWOT analysis. Added value is finding a level of internal marketing communication for company and creating some points for continuing in building quality internal marketing communication.

scholarly journals Creative accounting as one of the global tools for detecting fraud in Europe

2021 ◽  
Vol 129 ◽  
pp. 03024
Author(s):  
Monika Poradova
Keyword(s):  
Western Europe ◽  
Balance Sheet ◽  
Fraud Detection ◽  
Value Added ◽  
The Third ◽  
Creative Accounting ◽  
Method Analysis ◽  
Graphic Methods ◽  
Descriptive Method ◽  
Different Levels

Research background: The issue of fraud is a real and not an exceptional phenomenon in today’s global economies. Fraud arises in businesses at different levels and from different motivations. However, with the development of fraud, methods are also being developed to help detect such fraud. Therefore, the present paper focused on creative accounting as one of the global tools for detecting these scams. The present paper consists of four parts. The first part deals with the issue of creative accounting. The second part describes fraud techniques such as “windows dressing”, “off-balance-sheet financing” and “earnings management”. The third part of the article consists of an analysis of the development of fraud detection in Central and Western Europe. The third part also includes a discussion. The fourth part deals with the conclusions on the issue. Purpose of the article: describe the issue of creative accounting as one of the global tools for detecting fraud. One of the aims of this paper is also to analyse the development of fraud detection in Central and Western Europe. Methods: In the processing of the present paper, a descriptive method, analysis, mathematical and statistical methods, graphic methods, comparison and synthesis were used. Findings & Value added: provide an overview of the conditions for the creation of creative accounting, detection procedures, and the fight against creative accounting. The result of this article is a comprehensive view of the global frauds of Central and Western Europe.

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