Financial statements and accounting documents are a certificate of financial and financial position as well as the business performance of the entity. In its beginnings, creative accounting was ...conceived as an instrument of an objective presentation of the financial position and business results of business entities through the financial statements within the accounting regulatory framework. Initially, profit management efforts are legal and within the applicable financial reporting framework. However, over time, accounting techniques become inadmissible, unlawful and contrary to generally accepted accounting principles. Then the haircut of the financial result becomes illegal and turns into falsification of the financial statements. The aim of the paper is to synthesize knowledge about forms of creative accounting in order to indicate the importance and the need for reliable and quality financial reporting. Namely, this paper aims to contribute to the understanding and understanding of how accounting manipulations and the management of the financial result of an enterprise are manipulated.
The necessity for studying the current performance of the accounting statements system, finding out its transformation trends and justifying the vectors for its further improvement are substantiated. ...The existing approaches to defining the trends in the development of accounting statements are investigated, and their critical analysis is made. The author’s classification of trends in the development of accounting statements are developed taking into account changes in user’s requests for the accounting information. The problems and disadvantages of the existing accounting systems (financial, managerial, and strategic) are identified and further directions and prospects for their development are highlighted. The attention is focused on further directions of the development of accounting systems, which will elevate the accounting science on a new level of quality and ensure compliance of the accounting theory with the requirements of modern accounting and management practices. The essential tendencies in the development of accounting statements, which are insufficiently explored, and the vectors for modernization of the accounting system, not well-grounded in terms of creating new types, formats and forms of accounting statements, are outlined. It is found that a general classification of trends in the development of accounting statements has not existed by now, which does not allow for creating a general picture of research issues in this area. Not only the current trends in the development of accounting statements, but their backgrounds and impact on building a general classification of trends in the development of financial statements are analyzed. It is concluded that building of a classification of trends in the development of accounting statements has an important theoretical and practical value for the further development of accounting, because it will allow for to deeper understanding of the essence of various phenomena involved in the development of accounting statements.
ABSTRACT
Financial reporting has evolved over centuries in distinct stages. The first reports (Reporting 1.0) were the trial balances ensuring that debits equaled credits, using the terminology ...popularized by Pacioli. The next major innovation was formalized in the Great Depression, with Reporting 2.0 being the standardized and audited financial statements. Reporting 3.0 evolved as technology was used to augment that reporting process with ERP-based data and XBRL. Today, technology is still relying on the automation of existing processes in Reporting 3.0. This paper proposes the move to Reporting 4.0, where technology will change reporting as fundamentally as Industry 4.0 is changing business operations. What characterizes Reporting 4.0 is the application of the intelligence inherent in 21st-century technology to create an app-based reporting system characterized by mass customization: the ability for reports to be tailored to meet the needs of the heterogeneous stakeholder community of the multi-objective modern enterprise.
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The actions of companies are a multifaceted and complex procedure. The company communicates with several factors at various levels, from state to the suppliers. At the same time, in the course of ...the organization's whole operation, both internal and external ever-changing circumstances impact its actions and performance. That kind of ever-changing ambiance places organizations at risk of an financially unstable position. A company's bankruptcy is a regarded as crisis that needs particular approaches of financial management to surmount that. It appears greatly significant to evaluate the status of the company, take steps to restore solvency, and define the likelihood of bankruptcy. Analysis and assessment of the likelihood of bankruptcy supply an overall evaluation of the company's monetary stability, and a prediction for the future. This study aims to analyze some practical means to forecast companies' potential bankruptcy and financial insolvency. To gratify that aim, monographic, economic-statistical, and abstract-logical methods are considered. Based on the results obtained, to raise the effectiveness of the company's capital, working capital should be normalized through planning the lowest requirement for working capital for all the constituent factors vital for the company’s uninterrupted, and normal operation.
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Ministry of Finance in the Czech Republic identifies and defines four types of accounting entities that are engaged in business activities. These are the “normal” business entities, business entities ...as banks, commercial insurance companies and health insurance companies. For each of these types of entities the Ministry of Finance issued relevant regulations that contain specific accounting policies arising mainly from the specifics of the scope of business activities of these entities. The effects of these specifics are ultimately shown also in the individual parts of the financial statement closing. In contrast the International Financial Reporting Standards (IFRS) and also generally accepted accounting principles of the United States (U.S. GAAP) are valid for all listed entities regardless of their size and scope of activities. The ongoing globalization of the world, transnational mergers and acquisitions of various companies brings the requirements for unification of accounting policies in order to achieve comparability of financial statements closing of companies from different countries, their transparency and completeness of published information in the individual countries. This paper deals with the definition of significant differences in the items of financial statement closing of different types of business entities in the Czech Republic and with the formulation of proposals for individual types of entities, which would contribute to easier orientation and grater comparability for the needs of different users of accounting information.
The traditional recognition method of whitewash behavior of accounting statements needs to analyze a large number of special data samples. The learning rate of the algorithm is low, resulting in low ...recognition accuracy. To solve the aforementioned problems, this article proposes a method to identify the whitewash behavior of university accounting statements based on the FCM clustering algorithm. This article analyzes the motivation of university accounting statement whitewashing behavior, studies the common means of statement whitewashing, and establishes a fuzzy set for the identification of university accounting statement whitewashing behavior. By calculating the fuzzy partition coefficient, the membership matrix of whitewash behavior recognition is established, and the whitewash behavior is classified through the iteration of the FCM algorithm. The comparative experimental results show that the recognition method has good recognition performance, low recognition error rate, and recognition accuracy of 82%.
The article сarries out an analysis of the reflection of the consequences of environmental disasters and the corresponding preventive measures on the example of the consolidated financial statements ...of the Group of mining and metallurgical companies “Norilsk Nickel” and the accounting (financial) statements of JSC “Norilsk-Taimyr energy company” (NTEK), which is part of this group. The paper pays particular attention to the relationship between recognized environmental protection obligations and applicable standards for the preparation of accounting (financial) statements of commercial organizations and consolidated statements of groups that include these business entities. Based on the results of the study, the author formulates priority proposals to improve the Russian system of normative regulation of disclosure of information about environmental obligations in accounting (financial) statements.
The methodology for the audit of receivables in telecommunications sector organizations needs to be constantly developed and improved. The significance of checking receivables in organizations of the ...telecommunication sector has been considered in the article. The main tasks, which are set during the audit of receivables, have been examined. The content of audit procedure in accordance with applicable International Standards on Auditing has been described. The main risk areas during the audit of this article of the accounting (financial) statements have been revealed.
The project of the International Accounting Standards Board that updates and develops international accounting standards (IASB) has been lasting more than twenty years. In Ukraine, International ...accounting standards were adopted as the national standards for business and public sectors.
The article analyzes the Conceptual Framework for Financial Reporting for the business sector entities, compares it with the Conceptual Framework for financial reporting for the public sector entities, and the current requirements of the Ukrainian legislation in the field of accounting and financial reporting. The necessity of creating a single Conceptual Framework for financial reporting, based the needs of information users, is substantiated.
The relevant International Standards for the business sector entities became fundamental for the development of International Public Sector Accounting Standards. The similar needs of financial reports users support this approach. At the same time, part of the IPSAS, and the Conceptual Framework take into account the functional peculiarities of the entities in this sector of the economy.
Financial reporting concepts for entities in any sector of the economy determine the aim of financial reporting as that to acquire information concerning the entity. Investors, creditors, other lenders are prior users of financial information in the business sector while society as a whole uses information in the public sector. The Conceptual Framework for the public sector takes into account the peculiarity of this sector of the economy, the main purpose of which is to provide services to society, rather than generating profits and ensuring the return on capital of investors.
The common features of financial reporting standards and their Conceptual Framework, taking into account current trends and global challenges, indicate the possibility and feasibility of creating a unified (integrated) Conceptual Framework for Financial Reporting.
Keywords: the Conceptual framework for financial reporting, International Financial Reporting Standards for the entrepreneurial sector, International Public Sector Accounting Standards, National Accounting Statements (Standards).
JEL Classification M41
Formulas: 0; fig.: 1; tabl.: 2; bibl.: 20.
The subject of the research is the set of theoretical and practical approaches to the recognition of assets of the agricultural enterprises of the Omsk region in the accounting under IFRS. The ...research objective is the development of an optimal testing model of assets of the agricultural enterprises for compliance with IFRS. The study was conducted on the basis of financial statements prepared under the Russian Financial Reporting Standards. The three asset items with the largest share were allocated in the statements: fixed assets, inventories and accounts receivable. The most essential items were allocated as part of fixed assets: machinery and equipment and agricultural products respectively. Accounts receivable were tested for compliance with IFRS. The calculation of market price taking into account the correction factor in question considering the technical condition of vehicles was performed upon testing of machinery and equipment. The calculation of net realizable value based on market prices for the products was performed upon testing of machinery and equipment. The market-value appraisal of the receivable by discounted cash flows was performed upon testing. The proposed testing method has a practical value. It can be used in the preparation of financial statements under IFRS, on the basis of financial statements prepared in accordance with the Russian Financial Reporting Standards. It has been established that the machinery and equipment and agricultural products are reflected in the financial statements in accordance with IFRS. Because of overdue accounts the accounts receivable are substantially overstated.
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