Detecting Asset Misappropriation: Forensic Accounting

2021

The main task of the investigation of asset misappropriation is the correct classification of a crime: identification of the fact of misappropriation and determination of the amount of misappropriated assets. Specificity of asset diversity, asset accounting requirements, and a wide range of misappropriation opportunities require specialised knowledge in accounting and economics that investigators often lack. The aim of the study is to increase the knowledge of investigators in forensic accounting in order to increase effectiveness of investigations in detecting asset misappropriation. In this article, the authors, Latvian and Lithuanian accounting experts, talk about typologies of asset mis…

ACCOUNTING OUTSOURCING SERVICES IN LATVIA: PROBLEMS AND POSSIBLE SOLUTIONS

2013

Accounting outsourcing services as a type of business started developing in 1990ies. In compliance to the requirements of laws and regulations, accounting could be organized at companies in two ways – accounting could be performed by hired employees or a company may use accounting services by concluding a contract with a legal or a physical person on fulfilling the accounting functions. The authors perform research on the development of accounting services in Latvia in the historical context, carry out the analysis of the market of accounting services, study the factors influencing the quality of accounting services and develop the possible solutions for the improvement of the quality of th…

SMALL BUSINESS SUPPORT POLICY IN LATVIA

2016

Economic growth is the important factor for improving competitiveness and to ensure the availability of financial resources at all stages of business development. The authors explore European Union activities to promote the development of small and medium enterprises, the Latvian business environment, the regulatory framework, the accounting regulatory framework for small and medium enterprises. The research study included an assessment of the business environment in the international context for the years 2010 – 2016, national support programmes providing financial resources, their availability and tax policy guidelines for small and medium enterprises. The research study results are summa…

COMPLEX ANALYSIS OF COMPANY BANKRUPTCY FORECASTING: THEORETICAL INSIGHT

2018

In modern conditions for dynamic and competitive businesses, more and more companies face financial problems and eventually go bankrupt. A noteworthy trend: not only new companies that have not yet managed to establish themselves in the market go bankrupt but also large companies operating for years and maintaining good traditions. Bankruptcies of companies cause many problems not only for the companies themselves but also for the state and many members of society. Thus, it is crucial to evaluate the financial state of a company and its activity results as accurately and early as possible when forecasting the possibility of a bankruptcy. The paper recommends a complex analysis methodology f…

Due Diligence Matrix for Main User Groups of Financial Analysis

2014

Abstract Today the financial analysis indicators of an enterprise are topical for both internal and external users of an enterprise. Unfortunately, often to analyze the financial status of an enterprise and to identify the potential of an enterprise, it is not enough to have customary financial analysis indicators. In this paper, the data of the research that was conducted by the end of the year 2013 has been used. 1935 respondents took part in the survey – representatives of the leading business sectors in Latvia and representatives of the large and medium-sized enterprises. In the research, the authors have applied quantitative and qualitative methods of economics such as the mathematical…

Social accounting and its contribution to society

2013

With the development of the society and its economic system, a need has emerged to develop accounting as well. The increasing role of social accounting, which keeps records of for-profit, non-profit, and governmental organisations, is associated with the complexity of the environment in which businesses and organisations are operating and presenting reports about their social, ethical, and environmental aspects. Organisations are subject to greater transparency, and many stakeholders are interested in and concerned about the performance of organisations within the context that is not reflected, to a satisfactory extent, in traditional accounting. Traditional accounting ensures reporting to …

Turnover ratios and profitability ratios calculation methods: the book or average value

2019

The scientific literature of the turnover ratios and profitability ratios calculation offers to use book or average value of balance sheet calculation methods. Different schools of financial analysis nowadays offer many variations of the ratio calculations and even though the components of ratio formulas change, the meaning stays the same. The aim of this research is to analyze the turnover and profitability ratios, to study the different methods of calculation, based on different schools of financial analysis and empirical research results, and to create proposals for companies for the use of these methods for financial analysis. The authors of this paper are using the international scient…

Legislative basis for corporate social responsibility reporting

2014

The challenges for the profession of accountant in the changing global economic environment

2019

Nowadays we observe dynamic growth in the global economic environment and rapid changes in information and communication technologies. These factors have a strong impact, they cause changes in the expectations of parties involved and greatly impact the conditions and competencies of any profession. Technological progress and the importance of behavioral competencies, both ethically and legally, exercising professional judgment and emotional intelligence will bring many challenges and opportunities for those who have chosen the profession of an accountant. The professional organizations of accountants are organizing different workshops and open discussions where participants exchange their e…

Importance of social and sustainability reporting in ensuring transparency and disclosure

2014