Determining the Level of Accounting Conservatism through the Fuzzy Logic System
Background: Using a variety of alternative accounting policies brings about different effects on the stated business results and the value of the company. Objectives: The objective of this paper is to develop a fuzzy logic solution for determining bias in financial reports on low-activity financial...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Sciendo
2019-04-01
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| Series: | Business Systems Research |
| Subjects: | |
| Online Access: | https://doi.org/10.2478/bsrj-2019-0007 |
| _version_ | 1811226010231767040 |
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| author | Čičak Josip Vašiček Davor |
| author_facet | Čičak Josip Vašiček Davor |
| author_sort | Čičak Josip |
| collection | DOAJ |
| description | Background: Using a variety of alternative accounting policies brings about different effects on the stated business results and the value of the company. Objectives: The objective of this paper is to develop a fuzzy logic solution for determining bias in financial reports on low-activity financial markets, and to find a method applicable to unquoted entities. Methods/Approach: A fuzzy logic system was developed using data on Croatian companies, the MatLab software, and the Mamdani fuzzy inference method. Results: The paper provides the summary of results obtained using a fuzzy logic system, and they indicate that the model has relevant validity. Conclusions: The model can serve as a stimulus for more detailed studies of biased financial statements elements. The fuzzy logic model should be further tested on a larger sample of companies classified based on their activity and under different business conditions. |
| first_indexed | 2024-04-12T09:16:54Z |
| format | Article |
| id | doaj.art-483991ef23e64f82aaee6900d58b1d63 |
| institution | Directory Open Access Journal |
| issn | 1847-9375 |
| language | English |
| last_indexed | 2024-04-12T09:16:54Z |
| publishDate | 2019-04-01 |
| publisher | Sciendo |
| record_format | Article |
| series | Business Systems Research |
| spelling | doaj.art-483991ef23e64f82aaee6900d58b1d632022-12-22T03:38:48ZengSciendoBusiness Systems Research1847-93752019-04-011018810110.2478/bsrj-2019-0007bsrj-2019-0007Determining the Level of Accounting Conservatism through the Fuzzy Logic SystemČičak Josip0Vašiček Davor1Faculty of Economics and Business, University of Rijeka, Rijeka, CroatiaFaculty of Economics and Business, University of Rijeka, Rijeka, CroatiaBackground: Using a variety of alternative accounting policies brings about different effects on the stated business results and the value of the company. Objectives: The objective of this paper is to develop a fuzzy logic solution for determining bias in financial reports on low-activity financial markets, and to find a method applicable to unquoted entities. Methods/Approach: A fuzzy logic system was developed using data on Croatian companies, the MatLab software, and the Mamdani fuzzy inference method. Results: The paper provides the summary of results obtained using a fuzzy logic system, and they indicate that the model has relevant validity. Conclusions: The model can serve as a stimulus for more detailed studies of biased financial statements elements. The fuzzy logic model should be further tested on a larger sample of companies classified based on their activity and under different business conditions.https://doi.org/10.2478/bsrj-2019-0007accounting conservatismaggressive accountingfuzzy logic |
| spellingShingle | Čičak Josip Vašiček Davor Determining the Level of Accounting Conservatism through the Fuzzy Logic System Business Systems Research accounting conservatism aggressive accounting fuzzy logic |
| title | Determining the Level of Accounting Conservatism through the Fuzzy Logic System |
| title_full | Determining the Level of Accounting Conservatism through the Fuzzy Logic System |
| title_fullStr | Determining the Level of Accounting Conservatism through the Fuzzy Logic System |
| title_full_unstemmed | Determining the Level of Accounting Conservatism through the Fuzzy Logic System |
| title_short | Determining the Level of Accounting Conservatism through the Fuzzy Logic System |
| title_sort | determining the level of accounting conservatism through the fuzzy logic system |
| topic | accounting conservatism aggressive accounting fuzzy logic |
| url | https://doi.org/10.2478/bsrj-2019-0007 |
| work_keys_str_mv | AT cicakjosip determiningthelevelofaccountingconservatismthroughthefuzzylogicsystem AT vasicekdavor determiningthelevelofaccountingconservatismthroughthefuzzylogicsystem |