Financial Statement Manipulation & Types (2)

Aggressive Accounting; Recording consignment sales and the amounts of goods that have been invoiced but not yet shipped to the customer as sales revenue in order to show high profit in certain periods, generally by forcing the accounting standards, and also deferring some expenses and expenses related to the activities recorded as income to the following periods. Therefore, here too, it is possible to give misleading and incomplete information to the relevant parties regarding the financial status and operating results of the company.

Big Bath Accounting; In the periods when the management changes in the companies, the new management removing some inefficient assets from the balance sheet by expense, thus creating the impression that the previous management was more harmful than the previous periods and on the other hand, the future periods are more profitable.

Fraudulent Financial Reporting; Creative accounting practices are a mixture of financial information manipulation methods, which are also defined as aggressive accounting and accounting irregularities, and result in the fact that financial information users are informed about the financial situation and operating results of companies in an inaccurate, inaccurate manner. However, deceptive financial reporting is carried out both in terms of the element of intent and in this context, creating fictitious records, false, false invoices, delivery notes, etc. It is also worse in terms of its consequences due to transactions and practices that constitute a separate crime, such as issuing documents.

Accounting Errors and Irregularities; The error, which is defined as unintentionally disclosing false information in the financial statements, or omitting some information or not disclosing some information, may occur in the following situations:

1. Making mistakes during the collection and processing of information during the preparation of financial statements,
2. Inaccurate accounting estimates resulting from the observation, monitoring or evaluation of events,
3. Mistakes made during the application of accounting standards and principles regarding the amount, classification, presentation and public disclosure of financial information.

As above mentioned, profit management, profit stabilization, creative accounting practices, aggressive accounting, major accounting cleaning, deceptive financial reporting and accounting errors and irregularities, and briefly, about the financial situation, activity and operating results of a company, All transactions and practices that result in the presentation of false information to financial information users are considered as financial statement manipulation.