Naslov
A Survey on Creative Cash-Flow Reporting in Croatia

Autori
Aljinović Barać, Željana ; Ovuka, Duška

Vrsta, podvrsta i kategorija rada
Radovi u zbornicima skupova, cjeloviti rad (in extenso), znanstveni

Izvornik
4th International Conference on Social Science Research ICONSR'21 Proceedings & Abstracts Book / Kandemir, H. ; Ozdasli, K. ; Kala, E. - Isparta : Association of Kutbilge Academicians, 2021, 41-51

ISBN
978-605-70965-3-1

Skup
4th International Conference on Social Science Research

Mjesto i datum
Budva, Crna Gora, 08.09.2021. - 10.09.2021

Vrsta sudjelovanja
Poster

Vrsta recenzije
Međunarodna recenzija

Ključne riječi
Financial statements, creative accounting, cash flow statement, operating cash flow, Croatia

Sažetak
Information about the cash flows reported in the Statement of Cash Flow (SCF) provides the data about the firm’s ability to generate cash and cash equivalents. Moreover, information about current cash flows, especially from operating activities, is a useful tool in the prediction of sustainable cash flow. In spite that International Financial Reporting Standards (IFRS) regulate the preparation and presentation of SCF in detail, there are still many shadow accounting items that enable creative accounting practices, because International Accounting Standard (IAS) 7 allows flexibility in the classification of loans, interests, dividends, etc (Mulford and Comiskey, 2005). Although creative accounting does not violate the law, it negatively affects the true and fair view of the firm’s financial statements. This paper provides insights into creative cash flow reporting practices in Croatia. The sample consists of 71 randomly selected accountants to whom questionnaires were electronically sent in the period from March until August 2020. Respondents' opinions on the importance of the data provided by SCF, as well as on the efficiency of existing accounting regulations in preventing creative accounting are researched. Also, the most common methods and objectives of cash flow manipulations are identified. Findings show that most respondents consider IAS 7 suitable for the application of creative accounting techniques, and identified the timing of revenues/expenses recognition over multiple financial reporting periods as the most often technique. Furthermore, manipulation of cash flows from operating activities is determined as a usual goal of creative accounting, and the stretching out payables, especially at the end of the reporting period, is identified as the most common way of boosting operating cash flow.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA