Forensic accounting and economic value added as panaceas for analysis firm value
Purpose - In spite of the comprehensiveness of the International Financial Reporting Standards (IFRS) in ensuring fair value accounting.There are still few loopholes in the accounting standards which provide sufficient opportunities for financial statement manipulations (Ikpefan, & Akande 2012)....
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Main Authors: | , , |
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Format: | Conference or Workshop Item |
Language: | English |
Published: |
2017
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Subjects: | |
Online Access: | http://repo.uum.edu.my/24578/1/SICONSEM%202017%20143%20145.pdf http://repo.uum.edu.my/24578/ |
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Summary: | Purpose - In spite of the comprehensiveness of the International Financial Reporting Standards (IFRS) in ensuring fair value accounting.There are still few loopholes in the accounting standards which provide sufficient opportunities for financial statement manipulations (Ikpefan, & Akande 2012).Thus, this practice undermine the “true and fair” view of the financial statement as a result
of manipulating financial accounting records for selfish economic aggrandisement within the
purview of applicable laws and prevailing accounting standards..The objectives of this paper is to examine the role of forensic accounting and economic value added in analysis the corporate
value of firms.Mehodology - The conceptual framework sees forensic accounting practices and economic value added as the antecedent variables and the firm value as the outcome variable. The framework highlight the relationship between value relevance determinants such as forensic accounting and economic value added and the firm value of corporate firms.It emphasis the employment of
forensic accounting practices and the analysis of the economic value added as the means by
which the real value of firm can be assessed. Findings - The paper shown that forensic accounting practices and economic value added
measures are basic remedy for fraudulent financial statement practices because of their invulnerability to the practice of creative accounting. |
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