Hidden losses in financial reporting and the manner of hiding case Serbia: Part two
Hidden losses in financial reporting and the manner of hiding case Serbia: Part two

Summary/Abstract: There has always been a dilemma whether financial statements are a reflection of the real situation. When financial statements are subject to various conveniences in order to be presented according to the wish of the purchaser, it leads us to the dilemma when and how this happens. This thesis deals with the attempt to start to solve the dilemmas where and when manipulative actions in financial reporting occur. We have carried out researches on selected samples of money losing companies for the period from 2010 to 2013, on the example of financial indicators of the companies which operated in Serbia. Detection of manipulations by means of which loss is hidden in financial statements is very important for the state economy. Under these conditions, development of an adequate method in this area is limited with the international standards of financial reporting. Numerous qualitative and quantitative methods have been used for evaluation of the real and objective components of losses in order to reflect the level of losses in the economy much better. However, in our conditions, there is an universally accepted method which can foresee and evaluate all events and actions that detect hidden losses in financial statements. This thesis presents methods of evaluation (quantitative and qualitative data mining) and how they may be applied in detection of hidden losses in financial statements, by trying to identify a combination of methods which satisfies real needs of a certain task best.

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