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Estimated values: the provisions and the write-downs of assets as tools to manipulate financial results of enterprises

Copernican Journal of Finance & Accounting

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Field Value
 
Title Estimated values: the provisions and the write-downs of assets as tools to manipulate financial results of enterprises
 
Creator Stępień, Konrad; Financial Accounting Department, Cracow University of Economics, Rakowicka 27, 31-510 Cracow
 
Subject estimated values; provisions; write-downs of assets; financial result
M4
 
Description The purpose of using estimated values such as: provisions and write-downs of assets is to limit economic risk. Provisions should protect the entity against the adverse effects of future economic events that are possible to predict, and the write-downs of assets should protect the entity against overvaluation of its assets beyond their true value. However, in business practice, these estimates, are often used by the boards of companies to manipulate financial results, both as a tool to increase, as well as to decrease the result.The purpose of this study is to point out the problem of manipulating financial results of companies through the use of estimated values in the form of provisions and write-downs of assets. It seems that it should be taken seriously, and considered as one of the key problems of the theory, and in particular the practice of accounting. The following research methods have been used: an analysis of the literature, an analysis of normative acts, deduction method and comparison method.
 
Publisher Uniwersytet Mikołaja Kopernika w Toruniu
 
Contributor —
 
Date 2015-08-26
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
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Format application/pdf
 
Identifier http://apcz.pl/czasopisma/index.php/CJFA/article/view/CJFA.2015.011
10.12775/CJFA.2015.011
 
Source Copernican Journal of Finance & Accounting; Vol 4, No 1 (2015); 157-171
Copernican Journal of Finance & Accounting; Vol 4, No 1 (2015); 157-171
2300-3065
2300-1240
 
Language eng
 
Relation http://apcz.pl/czasopisma/index.php/CJFA/article/view/CJFA.2015.011/6765
 
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Rights Copyright (c) 2015 Copernican Journal of Finance & Accounting