Reasons and ways to manipulate financial statements

2020 ◽  
Vol 19 (6) ◽  
pp. 1121-1132 ◽  
Author(s):  
Ya.P. Fedorov
Keyword(s):  
Financial Reporting ◽  
Systems Approach ◽  
Operating Cost ◽  
Financial Statements ◽  
Financial Accounting ◽  
Cost Category ◽  
Wide Range ◽  
Analysis And Synthesis ◽  
Run Up ◽  
The One

Subject. The article considers the reasons and tools for manipulation of financial statements and ways to identify it. Objectives. The purpose of the study is to reveal preconditions and the main instruments of misstatements of financial reporting. Methods. The study employs empirical and logical constructions, analysis and synthesis, generalization, systems approach, methods of comparative analysis. Results. I show the main ways of misstatements of financial reporting and formulate mechanisms to detect them. The findings can be useful for enhancing the financial accounting standards, as well as for all interested stakeholders of enterprises that use financial statements. Conclusions. The absence of adequate responsibility of auditors and appraisers involved in the preparation and confirmation of reporting contributes to the practice of misrepresentation of financial statements. On the one hand, a company hires appraisers or auditors and pays for their services, and the latter have no motivation to engage in any confrontation with the company that manipulates its financial statements. On the other hand, companies, pursuing various goals (meeting the KPIs by managers or in the run-up to the M&A transaction), apply window dressing and manipulate their financial statements, using a wide range of tools, like revenues reposting, provisions for impairment, reclassification of costs from the operating cost to capital cost category, etc.

Analyzing the accuracy of bank reliability assessment based on official reporting

2020 ◽  
Vol 26 (2) ◽  
pp. 327-348
Author(s):  
O.I. Razumova
Keyword(s):  
Financial Reporting ◽  
Financial Stability ◽  
Systems Approach ◽  
Reliability Assessment ◽  
Financial Statements ◽  
Rating Agencies ◽  
Short Term Forecasting ◽  
One Year ◽  
Key Indicators ◽  
Correct Forecast

Subject. The article considers ratings of banks' reliability. Objectives. The aim is to evaluate the accuracy of existing methodology for bank reliability assessment based on official reporting, to identify patterns between indicators and factors that can affect the financial sustainability of a bank. Methods. The study draws on the comparative analysis of key indicators of bank's financial statements one year prior to the introduction of provisional administration, and evaluates the results of existing methods for analyzing the financial standing of banks. Results. The findings show that those methods that use only official reporting to assess the reliability of banks are not sufficient for short-term forecasting of financial stability. Ratings of the majority of agencies that rest on official reporting have a high percentage of erroneous results, therefore, rating agencies are not able to predict the regulator's decisions regarding a credit institution. Conclusions. Currently, there are no universal methods to determine reliability, which would provide a correct forecast of deteriorated financial position of the bank. It is important to use a systems approach, where financial reporting is not a key component.

Second Round Electronics: A Case for Critical Thinking

2013 ◽  
Vol 28 (4) ◽  
pp. 983-989 ◽  
Author(s):  
Nathalie Johnstone ◽  
Brandy Mackintosh ◽  
Fred Phillips
Keyword(s):  
Critical Thinking ◽  
Financial Reporting ◽  
Emerging Technologies ◽  
Financial Statements ◽  
Thinking Skills ◽  
Critical Thinking Skills ◽  
Financial Accounting ◽  
Class Discussion ◽  
For Profit ◽  
Writing Assignment

ABSTRACT This instructional case requires students to provide advice to a client who is currently the sole owner of a for-profit company that reconditions and sells used electronics. The client is considering purchasing a similar company with the vision of expanding into the sales and service of emerging technologies. The target company's unaudited financial statements contain questionable accounting choices and judgments that appear to enable the company to meet external financial reporting constraints. In their role as financial advisers, students are expected to use critical thinking skills to identify and evaluate questionable choices in the target company's financial statements. This case is suitable for use in introductory and intermediate financial accounting as well as introductory auditing and assurance courses, and can be used as a context for in-class discussion, as a basis for exam questions, and/or as a writing assignment. Assessment rubrics and Teaching Notes accompany the case for use by instructors.

A Cross-Country Empirical Investigation of Corruption and its Relationship to Economic, Cultural, and Monitoring Institutions: An Examination of the Role of Accounting and Financial Statements Quality

2002 ◽  
Vol 17 (4) ◽  
pp. 325-350 ◽  
Author(s):  
Marinilka Barros Kimbro
Keyword(s):  
Financial Reporting ◽  
Empirical Investigation ◽  
Financial Statements ◽  
Financial Accounting ◽  
Accounting Systems ◽  
Financial Reporting Standards ◽  
Information Monitoring ◽  
Per Capita ◽  
Cross Country

This paper empirically tests a model that links economic, cultural, and information/monitoring variables to corruption in 61 countries. The results offer significant evidence to suggest that higher GNP per capita, moderate economic growth, effective legal and financial accounting systems, collectivist values and low power distance are associated with countries that have low corruption. Countries that have better laws, more effective judiciary, good financial reporting standards, and a higher concentration of accountants are found to be less corrupt.

An Assessment of Compliance with Disclosure Requirements of IAS 41 (Agriculture) By Listed Agricultural Firms in Nigeria

2019 ◽  
pp. 9-18
Keyword(s):  
Financial Reporting ◽  
Stock Exchange ◽  
Financial Statements ◽  
International Accounting Standards ◽  
Listed Firms ◽  
External Auditors ◽  
Disclosure Requirements ◽  
Statutory Requirement ◽  
The One ◽  
Reporting Entity

This study examined the extent of compliance with disclosure requirements of IAS 41 by agricultural companies listed on the Nigerian Stock Exchange (NSE) for the period of 5 years (2013-2017). The data for the study were obtained from the published financial statements of the sampled firms for the period under review from which a compliance index were constructed, The tools for analysis used were the qualitative grading using a compliance index and the one way ANOVA purposely to test the hypotheses proposed. The study observed that three out of the four Companies achieved more than 70% with overall mean scores of 76.02%. This shows that majority of the agricultural firms in Nigeria strongly complied with the disclosure requirements of IAS 41. Based on the findings the study recommends among others that firms should strive at all times to comply with all regulatory and statutory requirement in the preparation and presentation of financial statements, giving the fact that it is a set of documents that prescribe the performance of the reporting entity. The Financial Reporting Council of Nigeria should publish annually the compliance status of all listed firms in Nigeria; so that the compliance status of every firm will become known to all interested users of financial statements; and also the Council should urge external auditors of firms to ensure that their clients are complying with the requirements of IASs issued by the International Accounting Standards Board (IASB).

Teaching Intermediate Financial Accounting Using a Business Activity Model

2000 ◽  
Vol 15 (4) ◽  
pp. 583-603 ◽  
Author(s):  
Anthony H. Catanach ◽  
David B. Croll ◽  
Robert L. Grinaker
Keyword(s):  
Financial Reporting ◽  
Financial Statements ◽  
Accounting Education ◽  
Financial Accounting ◽  
Professional Service ◽  
Business Activity ◽  
Curriculum Revision ◽  
Activity Model ◽  
Technical Competency ◽  
Accounting Courses

This paper describes a creative approach to the instruction of intermediate financial accounting that relies primarily on a business activity model (BAM). Initially funded by an Accounting Education Change Commission (AECC) grant, this curriculum revision is designed to (1) motivate students for their chosen profession, (2) promote their technical competency, and (3) develop in them an expanded set of educational objectives including critical-thinking, communication, and research skills. The BAM emphasizes financial disclosure and technical research as well as those topics commonly found in “traditional” intermediate accounting courses. Working in professional service teams, students mimic the accounting and financial-reporting processes found in the “real world” by conducting analytical reviews, soliciting information from clients, preparing adjusting and correcting entries, and drafting financial statements and notes for a fictitious client company.

FINANCIAL ACCOUNTING AND REPORTING IN SMALL FIRMS

1996 ◽  
Vol 04 (02) ◽  
pp. 163-182
Author(s):  
A.J.M. Humayun Murshed
Keyword(s):  
Decision Making ◽  
Financial Reporting ◽  
Small Firms ◽  
Financial Statements ◽  
Financial Accounting ◽  
Organizational Decision Making ◽  
Business World ◽  
Degree Of Satisfaction ◽  
Modern Business ◽  
And Control

Small firms’ role in the modern business world is well recognized. Despite such recognition, there exists a dearth of research in small firms, particularly in understanding the implications of accounting and finance. This paper reports the results of an empirical study carried out on the financial accounting and reporting of small firms in Bangladesh. Financial reporting does not seem to be important in these firms except for complying with tax formalities. No systematic way of presenting financial figures among the firms was observed. Most firms’ financial statements do not provide any database for organizational decision making. The managers have a high degree of satisfaction, particularly with the format used in presenting financial statements. On the contrary, they hardly use those financial statements in organizational decision making and control. They prefer to use a simple form of financial statement and show almost no concern for users’ need and attaining financial control.

scholarly journals The Role of Financial Accounting Standards for Small And Medium Micro Economic Sectors

2019 ◽  
Vol 8 (3) ◽  
pp. 17-23
Author(s):  
Ahmad Mukoffi ◽  
Yayuk Sulistiyowati
Keyword(s):  
Financial Reporting ◽  
Free Market ◽  
Accounting Standards ◽  
Financial Statements ◽  
Financial Accounting ◽  
Economic Sectors ◽  
Financial Reports ◽  
Strategy Model ◽  
Food And Beverage ◽  
The Government

In the preparation of financial statements based on financial accounting standards is an improvement in quality of financial statements, which will leverage the credibility of the financial statements in question. The research’s object to be studied are MSMEs in Food and Beverage Sector. The formulation of the problem in this study is, a. How is the preparation of MSME financial statements in the Food and Beverage sector based on EMKM SAK in Tlogomas Sub-District, Malang City, b. What are the constraints faced by MSMEs in the Food and Beverage Sector in implementing EMKM SAK in Tlogomas Sub-District Malang, c. What strategy model is effective from the government so that MSMEs can apply the SAK EMKM optimally. This research method used a combination of research methods (Mixed Methods). With adequate accounting, MSME entrepreneurs can fulfill the requirements in applying for credit, such as making financial reports. The researcher offers a model for the application of electronic-based financial reporting, this is to attract investors to contribute their capital, considering that currently entering the free market. This program also makes easier for the Bank to read the financial statements of micro entities.

scholarly journals XBRL as a Digital Reporting Format for Economic Entities: International Experience and Russian Practice Abstract

2020 ◽  
Vol 7 (3) ◽  
pp. 6-17 ◽  
Author(s):  
R. P. Bulyga ◽  
I. V. Safonova
Keyword(s):  
Financial Market ◽  
Financial Reporting ◽  
Multidimensional Space ◽  
World Language ◽  
Business Reporting ◽  
Market Participants ◽  
Digital Format ◽  
Wide Range ◽  
Analysis And Synthesis ◽  
Volumetric Representation

The issue of global transformation of the traditional format of accounting (financial) and non-financial reporting (in the form of PDF reports) into an interactive digital format of business reporting is relevant. The article is devoted to the analysis of domestic and world trends in the development of reporting of economic entities in the digital economy and identifying the prospects for using XBRL as the main digital format of business reporting. The research methodology is based on the application of a system of scientific methods: analysis and synthesis, induction and deduction, comparison, a systematic and logical approach and the method of analogies and groupings. As a result of the study, the trend in the development of reporting by economic entities is determined. The study justifies the strengthening of the role of information technology in the formation of new conceptual approaches to the disclosure of the information contained in it by synthesizing the elements of volumetric representation (using the method of “multidimensional space”) and modern IT platforms. A review of the use of the XBRL format as a world language for business reporting in international and Russian practice is conducted. Based on the analysis of global XBRL development initiatives actively discussed in the world community, it is concluded that the XBRL format has firmly taken the place of the main digital standard for the formation and disclosure of information by economic entities of leading world countries, and its further development is an inevitable future in solving the problem of creating a modern interactive digital format of business reporting of foreign and domestic companies. The research results can be used by a wide range of national regulators, investors and financial market participants, as well as international business and professional communities, with the practical transfer of all financial market participants to a single electronic format.

scholarly journals Ontwikkelingen in het conceptual framework

2013 ◽  
Vol 87 (9) ◽  
pp. 355-364
Author(s):  
Dick Van Offeren ◽  
Joop Witjes ◽  
Tim Verdoes
Keyword(s):  
Conceptual Framework ◽  
Financial Reporting ◽  
Accounting Standards ◽  
Financial Statements ◽  
Financial Accounting ◽  
International Accounting ◽  
International Accounting Standards ◽  
Financial Accounting Standards Board ◽  
Reporting Framework ◽  
International Accounting Standards Board

De International Accounting Standards Board (IASB) heeft recent het conceptual framework-project als kernproject aangemerkt. Het oorspronkelijke Framework for the preparation and presentation of financial statements (framework 1989) was aan een fundamentele herziening toe. Samen met de Financial Accounting Standards Board (FASB) heeft de IASB de eerste fase van het Conceptual framework for financial reporting (framework 2010) voltooid. In deze eerste fase worden twee onderwerpen besproken. Dit zijn het doel van financiële verslaggeving en de kwalitatieve kenmerken van financiële verslaggeving. Wij bespreken deze twee onderwerpen en gaan in op de verschillen tussen het framework 2010 en het framework 1989. Wij benadrukken het verschil in toepassingsgebied van de twee frameworks. Het framework 2010 is gericht op het ruimere begrip financial reporting, financiële verslaggeving en het framework 1989 was beperkt tot financial statements, jaarrekeningen.

scholarly journals Pelatihan Akuntansi Keuangan Bagi Siswa SMK Kartini Surabaya

2021 ◽  
Vol 1 (4) ◽  
Author(s):  
Soemaryono Soemaryono ◽  
Rudi Pratono ◽  
Ismangil Ismangil
Keyword(s):  
Community Service ◽  
Financial Reporting ◽  
Basic Concept ◽  
Accounting Standards ◽  
Financial Statements ◽  
Financial Accounting ◽  
Service Companies ◽  
Accounting Principles ◽  
Service Activity ◽  
Accounting Principle

Tujuan dari kegiatan pengabdian masyarakat ini adalah untuk meningkatkan keterampilan sumber daya manusia, dengan memberikan pembinaan pengetahuan dan keterampilan dalam laporan keuangan dengan standar akuntansi. Sasaran pengabdian masyarakat adalah siswa SMK Kartini Surabaya yang berdomisili di wilayah Surabaya. Diharapkan mahasiswa setelah mengikuti kegiatan pengabdian masyarakat dapat memahami konsep dasar akuntansi, prinsip akuntansi, persamaan akuntansi dan mampu Menyusun laporan keuangan dengan pernyataan standar akuntansi keuangan (PSAK). Metode pengabdian masyarakat dengan memberikan materi pengetahuan teoritis dan praktik. Hasil kegiatan pengabdian masyarakat adalah siswa dapat memahami konsep dasar akuntansi, prinsip akuntansi, persamaan akuntansi dan mampu Menyusun laporan keuangan dengan pernyataan standar akuntansi keuangan. Laporan keuangan perusahaan jasa, perusahaan dagang, dan perusahaan manufaktur.Kata Kunci: Konsep, Laporan Keuangan Persamaan Akuntansi, Prinsip AkuntansiThe purpose of this community service is to improve human resource skills, by providing knowledge and skills development in financial reporting with accounting standards. The target are students of SMK Kartini Surabaya who are domiciled in Surabaya area. It’s expected the students after participating in this community service activity can be understand the basic concept of accounting, accounting principles, accounting equations and able to prepare financial statements with the statement of financial accounting standards (PSAK). The methods of community service by providing knowledge material theoretical and practical. The results by students service activities are they can understand the basic concept of accounting, accounting principles, accounting equations and able to prepare financial statements with the statement of financial accounting standards. The Financial statements of service companies, trading companies, and manufacture companies.Keywords: Accounting Equations, Accounting Principle, Concept, Financial Statements

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