INFORMACIJOS APIE ĮMONĘ IŠKRAIPYMO BŪDAI IR PADARINIAI
WAYS AND CONSEQQUENCES OF INFORMATION FRAUD ABOUT AN ENTERPRISE

Summary/Abstract: In today’s global world, every legal entity is entitled to get a reliable information about other companies if their relationship is based on finance, production, cooperation, trade, etc. usually, everybody believes that the situation in the company they are interested in will be under constant improvement and will never get worse. However, in the real world, a company’s financial status and its performance results for dif¬ferent reasons can fluctuate. In turn, such negative consequences can influence a company’s performance and make a negative impact on managers, because investors, creditors and partners hardly tolerate them. Companies experiencing a constant pressure try in permissible ways to depict the company’s activity as being stable and reliable. this is done using permis¬sible standards but an inappropriate combination of means which distort the company’s performance and financial state. Moreover, sometimes information is mispresented and distorted to such extent that a correct information about the company’s assets and activity is impossible. Conscious distortions are most dangerous for legal entities when documents are a fraud, the enterprise’s performance and activities undergo distortion too, and registered data presented in financial statements and accountancy do not depict the real situation. The value of a company’s assets and liabilities provides good possibilities to cover all the debts owed to creditors and to continue the company’s performan¬ce. The value of fixed assets can be distorted, if the depreciation was not estimated at all or the calculation was done wrongly. In accountancy, if the depreciation value is pre¬sented as being smaller, it means that the cost price decreases and the profit increases. Sometimes, because of the maintenance and reconstruction of the fixed assets, their quality did not improve, or the usage did not prolong; it means that the expenses increase the cost price of the current period. In order to improve the company’s image, the value of fixed assets is increased by the amount of incurred expenses. It means that in a certain period of time the profit increases and in other periods decreases without a real ground because of the increased depreciation of assets. there are cases when fixed assets must be adjusted. If this is not done, the information about the company’s performance is incorrect. Company’s liabilities can be concealed if the clas¬sification does not correspond to a true picture, if the invoices and guarantees are not provided, if the real debt value is not given and can increase because of interest or fine. The amount of revenue and expendi¬ture makes an impact on the company’s profit, so the company tries to show an increase of revenues and a decrease of expenditure. Consequently, if the company wants to show a decrease of profit, the situation is inverse. The amount of revenues can be distorted by manipulating with the company’s transactions.

• Details
• Contents