Review article

ACCOUNTING MANIPULATIONS

Nemanja Budimir orcid.org/0000-0001-9916-6729 *
Bogdanka Hercegovac
Tanja Budimir orcid.org/0000-0001-9916-6729

* Corresponding author.

Abstract

Corporate governance is the organization of a corporation and contains the laws, rules and principles on which the organization is based and run. For the company's management to make decisions, it needs accurate and true financial reports. The financial statements seek to provide quality and relevant information to the entities. Also, they aim to provide information on the financial position and success, cash flows of the business entity, and which are useful for making economic decisions of a wider range of users. However, company management may resort to accounting manipulations, which lead to a decline in quality and confidence in financial statements. Accounting and bookkeeping can be seen as helping businesses to clarify their financial situation. The report is available to the authorities so that they can review the financial activities of the company. To make this possible, accounting rules have evolved over time. When the accounting rules are deviated from, the consequences can arise in the form of a financial crisis or an economic crisis within the company

Keywords

Accounting manipulations, earnings management, corporate governance.

Hrčak ID:

313074

URI

https://hrcak.srce.hr/313074

Publication date:

6.1.2024.

Article data in other languages: serbian

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