Accrual adjustment: applying the Modified Jones model to selected companies listed on the stock exchanges in Poland and Chile
Accrual adjustment: applying the Modified Jones model to selected companies listed on the stock exchanges in Poland and Chile

Summary/Abstract: Purpose: Information from the accounting system should secure the proper development o f business and the capital markets. On the other hand, fraud in the accounting sphere significantly distorts the image of an economic unit, which directly affects the level of social trust, as the trust of the interests of the recipients of financial statements is violated. On a global scale, such activities are developing rapidly. The aim of the article is to try to identify accrual adjustments as an accounting tool using the modified Jones model in Polish and Chilean listed companies. Methodology/approach: A modified Jones model was used to study accrual adjustments. The research sample consisted of 30 selected business entities listed on the stock exchange in Poland and Chile that published financial statements in accordance with IAS/IFRS between 2013 and 2017. In total, 60 listed companies were surveyed. Findings: Poland makes accrual adjustments to lower its operating result, while Chilean economic operators rely on accrual adjustments to increase their operating results. Chilean economic operators show a greater dispersion of discretionary accrual adjustments. Therefore, they show more cases of accounting manipulations than Polish companies. Research limitations: The main limitation of the study was the number of companies and the period covered by the study. Originality/value: In the authors' opinion, no studies have been conducted that compare the two countries, Poland and Chile

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