The work presents a variety of terms that name accounting manipulations. After analyzing scientific sources and conducting an analysis of the bibliographic data of the publications presented on the ...Web of Science website, the terminology problems prevailing in foreign and Lithuanian literature are revealed. This terminology brings a lot of confusion when dealing with the problem of accounting manipulations. The article examines the reasons for the use of different terms, presents the results of the conducted expert assessment. Experts appreciated the phenomenon – accounting manipulations that affect the amount of profit. They named associations derived from the terms "earnings management" and "creative accounting" used in Lithuanian literature. According to experts, the Lithuanian term that best reflects the phenomenon is manipulative accounting. The article presents the definition of manipulative accounting, which is constructed on the basis of the literature analysis.
The advent of creative accounting in the middle of the 20th century sparked great interest among researchers and practitioners. In the work of both foreign and Lithuanian scientists, this phenomenon ...is widely researched and defined as the ability to use the flexibility of legal acts in order to reflect subjective information in financial statements. However, in contrast to foreign literature, linguistic interpretations of the term "creative accounting" appeared in Lithuanian literature, which gave this phenomenon a positive meaning, associated with creativity and identified as positive creative accounting. The article examines the concept of creativity, its relationship with accounting, assesses the compatibility of creativity with creative accounting. Based on the analysis of the literature, it is proposed to refuse to divide creative accounting into positive and manipulative, as such a division not only contradicts the concept of creativity, but also undermines the essence of accounting and its multiplicity.
The article describes the bonus plan, debt/equity and political cost hypotheses, based on a positive accounting theory, with reference to opportunistic approach, explaining the reasons for choosing ...accounting methods. Research based on these hypotheses has revealed the main types of financial information manipulation - earnings management and creative accounting. After conducting the analysis of scientific sources, the article presents the definitions of earnings management and creative accounting of various authors, distinguishes the types of earnings management – accrual-based earnings management and real earnings management. After analyzing the manipulation methods indicated in the literature, a comprehensive list of profit management and creative accounting methods are presented. The methods are structured and classified according to their compliance with accounting standards, types of profit management and their impact on accounting areas. The provided list and classification of methods is useful in a scientific sense for further research on this phenomenon.
The beginnings of accounting can be found even in the 14st century, when trade transactions began to be recorded in the books of account. To this day, accounting has evolved at certain stages, ...depending on goals were set for the accounting for that period. In the article after concluding the analysis of scientific sources the following are presented: the stages of accounting development, which were influenced not only by different Anglo-Saxon, Germanic and Latin accounting systems, but also by economic and political factors; the influence of accounting on the development of accounting theories is revealed. The concept of positive accounting theory, assumptions for manipulating accounting and the concept and application methods of earnings management and creative accounting are presented. Based on the research, a model of multi-paradigm approach is presented, in which the methodologies of normative and positive accounting theory can be fully applied. The proposed complexity of methodologies can help to solve not only the problems of creative accounting and earnings management, but also other problems of the 21st century. accounting issues.
The accounting's policy choice and creating is influenced by accounting theory, impact factors, each company's objectives, and this makes company unique. Legislation for businesses in creating ...accounting policies allow to choose the following accounting methods and techniques that are most revealing aspects of the activities of the enterprise. In cases where the situation is not exactly to regulate the law is left to creativity. There is a need to apply creative accounting, which is identified as a factor influencing the choice of accounting policy. Taking into account the environmental factors of the company, creative accounting is applying in different accounting areas and in different volumes, while the accounting policy structure is forming. The main source of information about the company's financial position and the results are financial statements. On financial statements basis, information users make decisions. In order to influence information users decision's, company starts to manipulate financial data. In order to influence consumer decisions, creative accounting is used to manipulate financial data, which results in higher or lower company profits and distorts other financial information. On misleading data basis made financial statements not reflect a true and fair view of the company. The size of the distortion of information's, investigations are not carried out In Lithuania. The purpose of the study is analysis of the relationship of creative accounting and accounting policy and determinate the creative accounting impact to the formation of the accounting policy and accounting's results. Methods of analysis, data systematization, comparative, grouping and modeling were used during the research.
JEL classification: M41
Apskaitos politikos pasirinkimui ir kūrimui įtakos turi apskaitos teorijos, aplinkos įtakos veiksniai, įmonės tikslai. Teisės aktai, kuriant įmonės apskaitos politiką leidžia pasirinkti tokius apskaitos būdus ir metodus, kurie geriausiai atskleidžia įmonės veiklos aspektus.Tais atvejais, kai situacijos negalima tiksliai reglamentuoti yra paliekama vieta kūrybiškumui. Atsiranda poreikis taikyti kūrybinę apskaitą, kuris identifikuojamas kaip veiksnys darantis įtaką apskaitos politikos pasirinkimui. Kūrybinė apskaita, atsižvelgiant į įmonės aplinkos veiksnius, taikoma skirtingose apskaitos srityse ir skirtingomis apimtimis, sudarant apskaitos politikos struktūrą. Pagrindinis informacijos šaltinis apie įmonės finansinę būklę ir jos veiklos rezultatus yra finansinės ataskaitos, kurių duomenimis remiantis informacijos vartotojai priima sprendimus. Norint daryti įtaką vartotojų priimamiems sprendimams, apskaitos metu taikant kūrybinę apskaitą pradedama manipuliuoti finansiniais duomenimis, dėl ko gaunamas didesnis arba mažesnis įmonės pelnas, iškreipiama kita finansinė informacija.Klaidinančių duomenų pagrindu sudarytos finansinės ataskaitos neatspindi tikro ir teisingo vaizdo apie įmonę, tačiau tokių iškraipymo masto ir įtakos finansinių ataskaitų kokybei tyrimai Lietuvoje neatliekami. Tyrimo tikslas - išanalizuoti kūrybinės apskaitos ir apskaitos politikos ryšį ir nustatyti, kokią įtaką kūrybinė apskaita turi apskaitos politikos formavimui ir apskaitos rezultatams. Tyrimo metu naudoti analizės, duomenų sisteminimo, lyginamieji, grupavimo, modeliavimo metodai.
JEL klasifikacija: M41
The paper examines the concept of earnings management, including its characteristics and motives for use as presented in scientific literature. A matrix of firm and managerial motive clusters is ...presented in the light of the opportunistic behaviour hypotheses of positive accounting theory. The paper analyses the various types of earnings management practices and discusses profit-reducing and profit-enhancing accounting methods. It also explores the trends in the use of different types of earnings management and the reasons behind them, which can be divided into three phases. The normative period of accounting theories was characterised by the widespread use of accrual-based earnings management. During the positive period of accounting theory development, there was an increase in the practice of real earnings management. The evolution of accounting theories, improvements in auditing practices, and changes in accounting policies led to shift away from accrual-based to real earnings management.
Darbe nagrinėjama manipuliacinės apskaitos samprata, išskiriami manipuliacinei apskaitai būdingi bruožai, išnagrinėti mokslinėje literatūroje pateikti manipuliacinės apskaitos taikymo motyvai. Atsižvelgiant į pozityviosios apskaitos teorijos oportunistinio elgesio hipotezes, pateikiama įmonės ir vadovų motyvų grupių matrica. Straipsnyje nagrinėjamos manipuliacinės apskaitos taikymo rūšys, aptariami pelną mažinantys ir pelną didinantys apskaitos metodai. Nagrinėjamos skirtingų rūšių manipuliacinės apskaitos taikymo tendencijos ir priežastys, leidžiančios taikymą suskirstyti į tris etapus. Normatyviniame apskaitos teorijų laikotarpyje buvo gausiai taikomos manipuliacijos kaupiniais. Vėliau, pozityviajame apskaitos teorijų raidos laikotarpyje, stebimas manipuliacinės apskaitos veiklos pagrindu praktikos augimas. Apskaitos teorijų raida, audito praktikos tobulinimas ir apskaitos politikos keitimas paskatino praktikoje atsisakyti manipuliacijų kaupiniais taikymo, ją keičiant manipuliacijomis veiklos pagrindu.
In this paper, earnings management is analyzed in the light of stakeholder theory in order to evaluate earnings management ethics. The main reasons for using earnings management are studied and ...systematically arranged in the context of stakeholder theory. An assumption is made that together with other motives mentioned in the literature, perceived role of ethics and social responsibility may not only influence ethical evaluation of earnings management, but also impact use of earnings management in accounting practice. The results of a study on impact of perceived roles of ethics and social responsibility on ethical evaluation of earnings management, carried out among accountants providing professional services in Lithuania, are presented in this paper. The ethical evaluation of earnings management has been found to depend on its type. Accrual-based earnings management is seen as more unethical than real earnings management. It also reveals that accountants' belief that business ethics and social responsibility are less important is a motivation for the use of manipulative accounting.
Siekiant atlikti manipuliacinės apskaitos etinį vertinimą, straipsnyje manipuliacinė apskaita nagrinėjama suinteresuotųjų šalių teorijos aspektu. Remiantis manipuliacinės apskaitos taikymo priežasčių analizės rezultatais, straipsnyje susisteminti manipuliacinės apskaitos taikymo motyvai ir juos lemiantys veiksniai suinteresuotų šalių kontekste. Daroma prielaida, kad be literatūroje minimų manipuliacinės apskaitos taikymo motyvų, asmeninis požiūris į verslo etiką ir socialinę atsakomybę gali turėti įtakos ne tik manipuliacinės apskaitos vertinimui etine prasme, bet ir jos taikymui apskaitoje. Straipsnyje pateikiami Lietuvos apskaitos paslaugas teikiančių įmonių apskaitos specialistų asmeninio požiūrio į verslo etiką ir socialinę atsakomybę įtakos manipuliacinės apskaitos etiniam vertinimui tyrimo rezultatai. Nustatyta, kad manipuliacinės apskaitos etinis vertinimas priklauso nuo jos rūšies. Manipuliacinė apskaita kaupimo pagrindu yra vertinama kaip labiau neetiška, negu manipuliacinė apskaita veiklos pagrindu. Taip pat atskleista, jog apskaitos specialistų įsitikinimas, kad verslo etika ir socialinė atsakomybė yra mažiau svarbi, yra motyvas taikyti manipuliacinę apskaitą.
Purpose: The aim of this article is to compare the concepts of earnings management and creative accounting and to determine their similarities and differences.
Methodology/approach: In the study, it ...is assumed that earnings management and creative accounting are two different phenomena. A comparative study is carried out in three stages using theoretical study methods. In the first stage, by applying the genetic and historical approaches, the origin and development of earnings management and creative accounting are compared. The purpose of the comparison is to assess the origins, period, and causes of earnings management and creative accounting, and to determine the differences in origin and the points of contact. In the second stage, the def-initions of phenomena are compared using comparative analysis methods. In the third stage, using comparative analysis and analogy methods, earnings management techniques and creative accounting methods are compared.
Findings: The results of the study show that earnings management and creative accounting are two terms that describe the same phenomenon. To avoid confusion and ambiguity of the terminology, it is recommended that the term “earnings management” be used.
Practical implications: By abandoning the term “creative accounting” and using only the term “earnings management”, a contradiction between the academic community and practitioners, as well as terminological confusion, would be eliminated.
Originality/value: The terms “earnings management” and “creative accounting” are used in both different and similar contexts in the literature, and it is difficult to identify which actions describe earnings management and which ones describe creative accounting. A comparative study of earnings management and creative accounting assists in solving the terminological problems in the literature.
In today's market conditions and in the context of sustainable business, the provision of social responsibility information to information consumers is important. This paper focuses on corporate ...social responsibility disclosure and its importance in communicating with stakeholders. It examines the problem of information asymmetry faced by companies and the possibility of signalling to the most powerful stakeholder groups about their involvement in social activities. The paper develops a model for the calculation of a corporate social responsibility disclosure index. Based on the developed model, an empirical study was carried out to calculate the social responsibility disclosure index of companies listed on the Nasdaq Baltic Stock Exchange. The study found that over the period 2017-2022, the total amount of disclosures increased by 14.85%. It also assessed the amount and dynamics of disclosures in individual areas (environmental, social and HR-related, human rights, corruption and bribery, and verification of the implementation of corporate processes). The CSR disclosure model developed is universal and can be used to calculate a CSR disclosure index for all non-financial companies.
Šiuolaikinėmis rinkos sąlygomis ir tvaraus verslo kontekste svarbią reikšmę turi socialinės atsakomybės informacijos pateikimas informacijos vartotojams. Straipsnyje nagrinėjamas įmonių socialinės atsakomybės informacijos atskleidimas ir jo svarba komunikuojant su suinteresuotomis šalimis. Nagrinėjama įmonių, susiduriančių su informacijos asimetrijos problema, galimybė signalizuoti galingiausias suinteresuotųjų grupes apie įsitraukimą į socialines veiklas. Straipsnyje parengtas įmonių socialinės atsakomybės informacijos atskleidimo indekso skaičiavimo modelis. Pagal parengtą modelį atliktas empirinis tyrimas, kurio metu apskaičiuotas Nasdaq Baltic vertybinių popierių biržoje akcijomis prekiaujančių įmonių socialinės atsakomybės informacijos atskleidimo indeksas. Tyrimo metu nustatyta, kad per 2017–2022 m. laikotarpį bendras informacijos atskleidimo kiekis padidėjo 14,85 proc. Taip pat įvertintas atskirų sričių (aplinkosaugos; socialinės ir susijusios su personalu; žmogaus teisių; korupcijos ir kyšininkavimo; įmonės procesų įgyvendinimų patikrinimo) informacijos atskleidimo kiekis ir dinamika. Parengtas įmonių socialinės atsakomybės informacijos atskleidimo modelis yra universalus ir gali būti naudojamas vertinant visų nefinansinių įmonių socialinės atsakomybės informacijos atskleidimą.
In the modern market economy conditions, financial information is very significant when evaluating the results of enterprises’ financial status and activity results. General economic, mathematical, ...heuristic methods are used for this type of analysis. The article analyses application opportunities for one of the mathematical research methods–time series–as well as its research instruments, discusses the place and role of interpolation methods in a financial analysis. The article reveals that interpolation methods which may be used to determined former values of an enterprise’s financial indicators or identify reasons which determined the enterprise’s financial status and activity results are the following: 1) graphic and arithmetic interpolation in a linear equation; 2) geometric interpolation based on the compound percentage formula and 3) interpolation by averaging.
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