Journal of Knowledge Management, Economics and Information Technology

The approach of this topic suggested to us by the fact that currently, it persists a controversy regarding the elements that influence decisively the qualitative characteristics of useful financial information. From these elements, we remark accounting models and concepts of capital maintenance in terms of the accounting result, which can be under the influence of factors such as subjectivity or even lack of neutrality.

Therefore, in formulating the response to the question that is the title of the paper, we will start from the fact that the financial statements prepared by the accounting systems must be the result of processing after appropriate models, which ultimately can respond as good as possible to external user’s requirements and internal, in particular the knowledge of the financial position and performance of economic entities.

  Modeling in Accounting, an Imperative Process? (237.2 KiB, 2,457 hits)

Improving the numbers of financial statements can be achieved by several metods such as: recording the revenue too soon, recording bogus revenue, shifting the current expense to a futer or a earlier period, failing to record liabilities or shifting the cureent revenue to a later periods. As beeing science, technology or language of communication the accounting should reflect economic reality of transactions. Legal regulations, knowledge, creativity, management, and innovation spirit are all factors that are applied in practice and these factors contribute to economic reality through science of the reporting or ‘financial position and performance tuning (creative accounting).

  Improving the Numbers of Financial Statements (905.3 KiB, 2,135 hits)