scholarly journals Another image of accounting - creative accounting

2020 ◽  
Vol 10 (2) ◽  
pp. 100-110
Author(s):  
Ana-Maria Andrei Comandaru ◽  
Sorina-Geanina Stanescu ◽  
Cristina Mihaela Toma ◽  
Adriana Horaicu Păduraru
Keyword(s):  
Comparative Analysis ◽  
Research Methodology ◽  
National Level ◽  
Financial Statements ◽  
Scientific Article ◽  
Creative Accounting ◽  
Accounting Unit ◽  
Economic Reality ◽  
The Many ◽  
A Company

Creative accounting emerged during the last century in the English-Saxon economies as a result of the growing complexity of the economic reality. Creative accounting can be defined as the set of techniques used by a company’s accounting unit to modify the presentation of its accounts in a manner favourable to its expectations. Creativity in accounting can be used depending on the intention of the accountant, both in order to manipulate the financial statements and to find new solutions and accounting methods to the problems faced by a company. The positive or negative side of creative accounting is given by the many motivations for using it. The objective of this research is to present the main techniques and principles of creative accounting and its applicability at the national level in order to identify the advantages or limitations of using this new ‘creative accounting’ paradigm. The research methodology used in this scientific article is based on the study of the specialised literature in the field using theoretical documentation and comparative analysis.   Keywords: Creative accounting techniques, Principles, Reports.     .

scholarly journals MONEY LAUNDERING RISK ASSESSMENT REGARDING THE ACCOUNTING PROFESSION

2021 ◽  
Author(s):  
Tajana Petrović ◽  
◽  
Sonja Cindori ◽  
Keyword(s):  
Money Laundering ◽  
National Level ◽  
Financial Statements ◽  
Risk Assessments ◽  
Legal Regulations ◽  
A Posteriori ◽  
Accounting Profession ◽  
Creative Accounting ◽  
The Republic ◽  
Illegal Activities

The assessment of money laundering and terrorist financing risks is conducted at the supranational and national level, including risk factors and risk variables. Based on the mentioned, the accounting profession is required to provide risk assessments at the level of obliged entities, which results in suspicious transactions reports. The number of suspicious transactions reported in the Republic of Croatia, as well in the world, is notably small, which speaks in favor of insufficient awareness of the threats posed by such conduct. The susceptibility of the accounting profession to illegal actions through the possibility of adjusting financial statements within the framework of creative accounting is evident, while due to non-compliance with legal regulations, unprofessionalism, and unethical needs, there is a need for forensic accounting. The peculiarities of the accounting profession support its ambiguous role in the detection of money laundering and other illegal activities, however, such measures are always implemented a posteriori.

scholarly journals Analysis of Possibilities of Detectnig the Manipulation of Financial Statements in Terms of the IFRS and Czech Accounting Standards

2015 ◽  
Vol 63 (6) ◽  
pp. 1859-1866 ◽  
Author(s):  
Zita Drábková
Keyword(s):  
Financial Reporting ◽  
Balance Sheet ◽  
Accounting Standards ◽  
Financial Statements ◽  
Reporting Standards ◽  
Financial Reporting Standards ◽  
Creative Accounting ◽  
Risk Detection ◽  
Accounting Unit ◽  
Comparison Of The Results

The main objective of financial statements is to give information. The diversity of interests and objectives of individual groups of users and creators of financial statements presents the risk of manipulation of financial statements in the context of true and fair view as defined in the national accounting legislation. The paper is concerned with the different possibilities of detecting the manipulation of financial statements in terms of the Czech Accounting Standards and IFRS. The paper analyzes the selected risk detection models of the manipulation of financial statements using creative accounting methods, off-balance sheet financing methods and accounting frauds in specific case studies of selected accounting unit in terms of Czech accounting standards. Based on the analysis and comparison of the results thereof, the paper presents and evaluates the alternatives of users of financial statements to evaluate the risk of manipulation of financial statements beyond the scope of a fair and true view. The evaluation further includes a comparison of uses of these models with respect to the International Financial Reporting Standards.

scholarly journals Impact of creative accounting on the company value: Empirical study for Slovakia

2021 ◽  
Vol 92 ◽  
pp. 02001
Author(s):  
Eva Adamikova ◽  
Iveta Sedlakova
Keyword(s):  
Accounting Information ◽  
Value Added ◽  
Financial Statements ◽  
Basic Material ◽  
Tax Base ◽  
Company Value ◽  
Creative Accounting ◽  
Method Yield ◽  
A Company

Research background: Procedures and methods for determining the value of a company are different. The purpose of determining the value of the company, what results the company reports and also who performs the valuation has a significant influence on the choice of the method. Purpose of the article: The determination of the final value of the company is influenced by many factors, economic, technical, specifics of the company and also the date on which the value is calculated and who performs the evaluation. Methods: In expert practice in determining the value of the company, we work mainly with methods based on property and income principles (asset method, yield method). The basic material for calculating the value of a company is the company’s accounting, which, however, can often be influenced. There can be several purposes for distorting accounting information (financial statements). The most common reason is the reduction of the tax base, or artificial improvement of the achieved results. Creative accounting practices significantly affect the structure of the company as well as its financial results. Findings & Value added: The main goal of the paper is to quantify a few examples, which will contribute to reducing the economic result. Subsequently, we analyse these interventions how they can affect the resulting general value of the company determined by the expert and whether the expert is able to detect them.

scholarly journals Creative Accounting as an Apparatus for Reporting Profits in Agribusiness

2020 ◽  
Vol 13 (11) ◽  
pp. 261
Author(s):  
Roman Blazek ◽  
Pavol Durana ◽  
Katarina Valaskova
Keyword(s):  
Operating Characteristic ◽  
Slovak Republic ◽  
Roc Curves ◽  
Financial Statements ◽  
Financial Statement ◽  
Business Partners ◽  
Creative Accounting ◽  
Fishing Sector ◽  
A Company ◽  
Source Of Information

The economic results of a company are an important tool for many entities, e.g., for internal entities as well as for external entities. As the economic results of a company are often the only source of information that informs the company’s partners about the managerial activities of their company, it is necessary to present these economic results using real numbers. However, companies prefer to achieve better results by applying the principles of creative accounting, which leads to improved economic values being shown to be achieved during an accounting period. The purpose of this article is to apply models that have been developed to detect creative accounting, which occurs under conditions that help enterprises to adjust their financial statements and tax bases and involves using creative accounting techniques to become competitive or to be able to take advantage of deductions. These models were applied to the Slovak Republic’s agriculture, forestry, and fishing sector (sector A), which is highly affected by earnings manipulation. This article provides a numerical expression of companies, which were previously, with some probability level, involved in conducting financial statement manipulation. Subsequently, the results that were obtained have been displayed using receiver operating characteristic (ROC) curves. The outputs of the analysis show that a large proportion of the companies in this sector tend to use creative accounting, which is not only harmful for entrepreneurs and their business partners in sector A, but also for the Slovak Republic at large, as the Slovak government cannot determine whether the reported accounting results reflect a company’s real financial situation.

scholarly journals PENERAPAN KOMBINASI METODE SAW DAN TOPSIS DALAM ANALISIS FUNDAMENTAL SAHAM BERDASARKAN RASIO KEUANGAN

2021 ◽  
Author(s):  
Angger Binuko Paksi
Keyword(s):  
Financial Statements ◽  
Financial Ratios ◽  
Fundamental Analysis ◽  
Test Results ◽  
Decision Matrix ◽  
Financial Reports ◽  
The Many ◽  
Profitability Ratios ◽  
A Company ◽  
Proper Analysis

Investment in stocks is one of the many options to invest. In stock investing requires a proper analysis and action so that an investor can invest according to their needs. One way is fundamental analysis. Fundamental analysis is an analysis method that focuses on key data contained in the financial statements of a company to assess the financial performance of the company.This research aims to design a process of fundamental analysis of stocks based on the analysis of financial ratios, methods of SAW and TOPSIS methods. Analysis of financial ratios generally include the liquidity ratio, solvency, activity ratios, profitability ratios and the ratio of the market. Fuzzy numbers used in the method of SAW and TOPSIS to provide effectiveness in determining the value of the decision matrix. SAW method used to find the value of the normalized matrix for each criterion and TOPSIS methods used to find solutions / alternatives based on the normalized matrix. Then the design is applied in the form of a ranking system based web application.Tests conducted with 60 financial reports in the period from 2013 to 2015 and is divided into 20 issuers. The accuracy of the test results using Spearman correlation ranking based on Springate models obtained the lowest value of 85.45% and the largest 100%.

scholarly journals Critical Examination of the Impact Accounting Ethics and Creative Accounting on the Financial Statements

2017 ◽  
Vol 10 (6) ◽  
pp. 104
Author(s):  
Adel M. Qatawneh ◽  
Atala M. Alqtish
Keyword(s):  
Mathematical Model ◽  
Statistical Analysis ◽  
Positive Impact ◽  
Financial Statements ◽  
Critical Examination ◽  
Accounting Ethics ◽  
Creative Accounting ◽  
The Impact ◽  
A Company ◽  
Profession Ethics

This study aimed to determine the impact accounting ethics and creative accounting on the financial statements in Jordan, the study importance arises from the need to recognize creative accounting and profession ethics for accountants, creative accounting can be used to manage profits, income smoothing.Earnings management occurs when accountants use judgment in financial statements and in structuring transactions to alter financial statements to either mislead some shareholders about the underlying performance of a company, sometimes to impact contractual outcomes that depend on financial reporting.To achieve the objectives of this study a questionnaire designed and distributed to the society of tax auditors and mathematical model built to link between creative accounting and accounting ethics percentage and some financial figures.The statistical analysis showed that ethics and creative accounting had a positive impact on the financial statements.

Creative Accounting and Its Impact on Financial Statements

2020 ◽  
pp. 239-250
Author(s):  
Gabriela Claudia Oncioiu ◽  
Alina Stanciu
Keyword(s):  
Financial Statements ◽  
Economic Event ◽  
Creative Accounting ◽  
Economic Reality ◽  
The One

Creative accounting responds to the same issue faced by the management, but the answer lies at the boundary between the legal and de facto recording of the economic event, leaving accountants to create the entity's economic reality. The manager of the entity can choose from the multitude of accounting treatments and policies, the one that is most convenient and responds best to their own interests, which implies that the outcome may be convenient and not necessarily true. This chapter presents the implications and challenges of creative accounting on financial statements. The results show that the main controversy raised by the standards refers to the need for periodic reassessments and the possibility of choosing a method of measuring the value, which creates premises for the practice of creative accounting.

ANALISIS PREDIKSI POTENSI KEBANGKRUTAN PADA PT BANK MUAMALAT INDONESIA Tbk PERIODE 2012-2016 DENGAN MENGGUNAKAN METODE ALTMAN MODIFIKASI

2017 ◽  
Vol 5 (2) ◽  
pp. 287-324
Author(s):  
Dewi Laela Hilyatin
Keyword(s):  
Financial Performance ◽  
Financial Structure ◽  
Financial Statements ◽  
Financial Ratios ◽  
Z Score ◽  
Altman Analysis ◽  
Gray Area ◽  
Modification Method ◽  
A Company

Abstract Bankruptcy is a very essential issue that every company should be aware of. Bankruptcy of a company can be minimized by advanced prediction; such as analyzing the financial statements. This study discusses the financial performance of PT Bank Muamalat Indonesia Tbk, which indicates that there is a degression in some number of financial ratios, the closing of offices and firing of employees in 2012-2016, causing he fact that BMI must pay attention and improve its financial performance and anticipate the existence of a bankruptcy in the company. Based on Altman analysis modification for financial performance of PT Bank Muamalat Indonesia Tbk in 2012-2016, it found Z-Score value of 0,825, 0,659, 1,243, 0,982 and 0,892. Based on Z-Score criteria, PT Bank Muamalat Indonesia Tbk is predicted to experience problems in management and financial structure and also in potentially bankruptcy due to Z-Score value <1,1 while the highest Z-Score value is in 2014, which shows the value of Z-Score>1,1 and <2,6, which means the company is in the gray area, meaning the company’s category is not said to be bankrupt and also not healthy. Keywords: Bankruptcy, Altman Modification Method

Comparative analysis of the trade policy of Barack Obama and Donald Trump

2020 ◽  
pp. 59-71
Author(s):  
V. Iordanova ◽  
A. Ananev
Keyword(s):  
United States ◽  
Economic Development ◽  
Comparative Analysis ◽  
Trade Policy ◽  
World Economy ◽  
The United States ◽  
Barack Obama ◽  
Scientific Article ◽  
Donald Trump ◽  
Entire World

The authors of this scientific article conducted a comparative analysis of the trade policy of US presidents Barack Obama and Donald Trump. The article states that the tightening of trade policy by the current President is counterproductive and has a serious impact not only on the economic development of the United States, but also on the entire world economy as a whole.

PENGARUH CAR, LDR DAN ROA TERHADAP LABA PERUSAHAAN PERBANKAN TERDAFTAR DI BURSA EFEK INDONESIA

2018 ◽  
Vol 23 (1) ◽  
pp. 72-85
Author(s):  
Lasminisih ◽  
Emmy Indrayani
Keyword(s):  
Decision Making ◽  
Multiple Regression ◽  
Stock Exchange ◽  
Financial Statements ◽  
Capital Adequacy ◽  
Financial Statement ◽  
Return On Assets ◽  
Capital Adequacy Ratio ◽  
A Company ◽  
Future Plans

Company financial statement can be used to monitor the performance of a company. Financial statements are also used as a means for decision making so that the company can anticipate future plans. The purpose of this study was to find out the effect of Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR) and Return on Assets (ROA) on profit changes percentage of Banking Companies. The number of sample companies used in this study was 27 Banks listed in the Indonesia Stock Exchange with observation periods from 2007 to 2008. The method used in this study was multiple regression. The results of this study have indicated that CAR, LDR, and ROA gave significant effects on changes in Banks profit so that Banking Companies performances can be measured. Keywords: CAR, LDR, ROA, Profit

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