Estimated values: the provisions and the write-downs of assets as tools to manipulate financial results of enterprises
<p>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 aga...
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| Format: | Article |
| Language: | English |
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Nicolaus Copernicus University in Toruń
2015-08-01
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| Series: | Copernican Journal of Finance & Accounting |
| Subjects: | |
| Online Access: | https://apcz.umk.pl/czasopisma/index.php/CJFA/article/view/7412 |
| _version_ | 1797725438493065216 |
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| author | Konrad Stępień |
| author_facet | Konrad Stępień |
| author_sort | Konrad Stępień |
| collection | DOAJ |
| description | <p>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.</p><p>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.</p> |
| first_indexed | 2024-03-12T10:31:14Z |
| format | Article |
| id | doaj.art-ebcc1292b6bf42daa947339de4880818 |
| institution | Directory Open Access Journal |
| issn | 2300-1240 2300-3065 |
| language | English |
| last_indexed | 2024-03-12T10:31:14Z |
| publishDate | 2015-08-01 |
| publisher | Nicolaus Copernicus University in Toruń |
| record_format | Article |
| series | Copernican Journal of Finance & Accounting |
| spelling | doaj.art-ebcc1292b6bf42daa947339de48808182023-09-02T09:16:11ZengNicolaus Copernicus University in ToruńCopernican Journal of Finance & Accounting2300-12402300-30652015-08-014115717110.12775/CJFA.2015.0116632Estimated values: the provisions and the write-downs of assets as tools to manipulate financial results of enterprisesKonrad Stępień0Financial Accounting Department, Cracow University of Economics, Rakowicka 27, 31-510 Cracow<p>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.</p><p>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.</p>https://apcz.umk.pl/czasopisma/index.php/CJFA/article/view/7412estimated valuesprovisionswrite-downs of assetsfinancial result |
| spellingShingle | Konrad Stępień Estimated values: the provisions and the write-downs of assets as tools to manipulate financial results of enterprises Copernican Journal of Finance & Accounting estimated values provisions write-downs of assets financial result |
| title | Estimated values: the provisions and the write-downs of assets as tools to manipulate financial results of enterprises |
| title_full | Estimated values: the provisions and the write-downs of assets as tools to manipulate financial results of enterprises |
| title_fullStr | Estimated values: the provisions and the write-downs of assets as tools to manipulate financial results of enterprises |
| title_full_unstemmed | Estimated values: the provisions and the write-downs of assets as tools to manipulate financial results of enterprises |
| title_short | Estimated values: the provisions and the write-downs of assets as tools to manipulate financial results of enterprises |
| title_sort | estimated values the provisions and the write downs of assets as tools to manipulate financial results of enterprises |
| topic | estimated values provisions write-downs of assets financial result |
| url | https://apcz.umk.pl/czasopisma/index.php/CJFA/article/view/7412 |
| work_keys_str_mv | AT konradstepien estimatedvaluestheprovisionsandthewritedownsofassetsastoolstomanipulatefinancialresultsofenterprises |