Creative Accounting Practicies in Slovakia After Passing Financial Crisis

Škoda, Miroslav; Lengyelfalusy, Tomáš; Gabrhelová, Gabriela

doi:10.12775/cjfa.2017.012

Cited by 10 publications

(4 citation statements)

References 18 publications

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“…They also implement techniques giving opportunities for the company's management to accomplish different goals simultaneously. (Škoda, Lengyelfalusy & Gabrhelová, 2017;Khocha, 2017;Ruland, 1984;Pepur, Mihanović & Pepur, 2013).…”

Section: Methodology Of Researchmentioning

confidence: 99%

Using Accounting Information for Strategic Decision-Making in a Multi-Segmented Company

Mihaylova

Papazov

2018

CJFA

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Section: Methodology Of Researchmentioning

confidence: 99%

Using Accounting Information for Strategic Decision-Making in a Multi-Segmented Company

Mihaylova

Papazov

2018

CJFA

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“…Additionally, experimental data demonstrates that executives and recruiting specialists in for profit companies favor hiring accounting managers with personality traits that make them more likely to engage in creative accounting and earnings management (Malkogianni & Cohen, 2022;Chouaibi & Zouari, 2022;Zhong et al, 2022). Skoda et al (2017) revealed four key variables of creative accounting: ethical considerations, disclosure quality, internal control, and ownership structure. However, it is unknown whether these four key variables relate to financial reporting.…”

Section: Literature Reviewmentioning

confidence: 99%

Earnings management model for Visegrad Group as an immanent part of creative accounting

Kováčová

Hrosova

Ďurana

et al. 2022

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Research background: Creative accounting practices do not frequently violate the law and are not considered illegal; however, accounting managers may exploit legal ambiguities to portray the company's financial standing in accordance with management preferences. Therefore, the analysis is focused on the detection of earnings management in companies operating in the Visegrad Group, which represents one of the most commonly used techniques for revealing creative accounting. Purpose of the article: The aim of the presented study is to reveal the presence of creative accounting through the detection of earnings management in the countries of the Visegrad Group and, based on the detected results, to propose a regression model of earnings management in the Visegrad Group. Methods: To reveal the use of creative accounting in the Visegrad Group, ten selected models of earnings management were applied during the period 2016?2020 to a set of 8,134 companies. The Mann-Whitney test and multiple linear regression were used to verify the existence of earnings management. These findings served as the basis for the creation of the linear regression model of earnings management in the Visegrad Group. Findings & value-added: The presence of earnings management was best captured by the Hribar and Collins model in companies operating in the Visegrad Group in the period 2016?2020. The findings also confirmed that positive discretionary accruals acquired higher values over the entire period when compared to negative discretionary accruals, confirming that companies in the surveyed group manage their profits primarily by increasing them. Therefore, we created a regression model, that can serve as a unique basis and is capable of revealing the use of earnings management in the Visegrad Group, as until now nothing like this has been implemented in these countries. In conclusion, this study offers insights for academicians and researchers on creative accounting in the selected period. Lastly, the study contributes to the existing theory by conducting new research on the earnings management determinants of the countries studied.

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“…V rámci rozsáhlé novelizace českých účetních předpisů účinné od roku 2016 měli auditoři školení týkající se této novelizace jako povinné prioritní téma v rámci kontinuálního profesního vzdělávání, a přesto se to u významné části z nich neprojevilo pozitivním způsobem na kvalitě účetních závěrek jejich klientů. Zajímavý vhled by mohlo přinést i porovnání s ostatními státy střední a východní Evropy, byť empirické studie jsou zatím ojedinělé a determinantům zveřejňované (ne)kvality u retrospektivních úprav v účetní závěrce se spíše věnují okrajově (Škoda, Lengyelfalusy, Gabrhelová, 2017;Zlati, Antohi, Cardon, 2019). Další výzkum by se měl zaměřit na příčiny tohoto neuspokojivého stavu, zda je důsledkem nefunkčních vnitřních mechanismů při přípravě účetní závěrky, nebo zda neuvedení bližších informací je záměrné s cílem skrývat nepříznivé informace.…”

Section: Závěrunclassified

Reporting of Prior Period Errors and Changes in Accounting Policies by Czech Companies

Skálová¹,

Mejzlík²,

Bareš³

2020

Politicka ekonomie

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Reporting of Prior Period Errors and Changes in Accounting Policies by Czech Companies The paper investigates the extent and reasons for restatements of financial statements by Czech firms. In 2013, Czech accounting regulation was amended to remove inappropriate accounting treatment for prior period errors and changes in accounting policies. A sample of 3,407 financial statements for the period 2013-2017 also includes a significant amendment to accounting standards in 2016. The combination of both amendments creates a quasi-natural experiment enabling investigation into firms' response to regulatory changes. Empirical analysis shows that restatements occurred in 7.4% of the cases. Using non-parametric tests, we found that restatements are more frequent in joint-stock companies and that corrections of prior period errors dominate over changes in accounting policies. An expected one-time increase in restatements in 2016 is confirmed; however, the hypothesis that increased restatements are driven by changes in accounting policies required by new GAAP can be neither confirmed nor refuted. The main cause is that over 50% of the entities did not disclose their reason for restatement, despite the fact that disclosure is mandated by accounting standards and all financial statements are audited.

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Creative Accounting Practicies in Slovakia After Passing Financial Crisis

Cited by 10 publications

References 18 publications

Using Accounting Information for Strategic Decision-Making in a Multi-Segmented Company

Using Accounting Information for Strategic Decision-Making in a Multi-Segmented Company

Earnings management model for Visegrad Group as an immanent part of creative accounting

Reporting of Prior Period Errors and Changes in Accounting Policies by Czech Companies

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