This page has only limited features, please log in for full access.
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.
Roman Blazek. Creative accounting as a global tool for tax optimization. SHS Web of Conferences 2021, 92, 02007 .
AMA StyleRoman Blazek. Creative accounting as a global tool for tax optimization. SHS Web of Conferences. 2021; 92 ():02007.
Chicago/Turabian StyleRoman Blazek. 2021. "Creative accounting as a global tool for tax optimization." SHS Web of Conferences 92, no. : 02007.
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.
Roman Blazek; Pavol Durana; Katarina Valaskova. Creative Accounting as an Apparatus for Reporting Profits in Agribusiness. Journal of Risk and Financial Management 2020, 13, 261 .
AMA StyleRoman Blazek, Pavol Durana, Katarina Valaskova. Creative Accounting as an Apparatus for Reporting Profits in Agribusiness. Journal of Risk and Financial Management. 2020; 13 (11):261.
Chicago/Turabian StyleRoman Blazek; Pavol Durana; Katarina Valaskova. 2020. "Creative Accounting as an Apparatus for Reporting Profits in Agribusiness." Journal of Risk and Financial Management 13, no. 11: 261.