Page 40 - DUT ICGA Abstract Book

ACCOUNTING MANIPULATION AND ITS IMPACT IN IN THE FINANCIAL PERFORMANCE OF THE SOUTH AFRICAN ENTITIES
Banothile Nontsikelelo Dzanibe
Department of of Financial Accounting Durban University of of Technology
Abstract
Financial information manipulation is is a a a a a a a a a a a a common practice worldwide and is is done in in in a a a a a a a a a a a a variety of ways such as falsification of of the financial financial performance and generating a a a a a a a a a a a a a distorted impression of of an an an an an an organization’s financial financial stability In financial accounting this practice is is referred to as revenue management income smoothing creative accounting accounting accounting practices aggressive accounting accounting accounting or accounting accounting accounting manipulation but the essence is similar for for all terms The implication for for these manipulation practices on on on company’s perspective is that it creates a a a a a a a a good reflection of the the company’s financial performance and this positively affects the the decision making to to the financial statement readers Literature suggests that manipulation of accounting is mostly done to to minimise liabilities and and and taxation and and and increase Assets and and and Equities with the aim of confusing stakeholders and creating healthy financial statements It is is mostly done to get credit facility The negative result for this practice does not only affects affects banks and Tax Collectors but it affects affects the society as well because once the the the organization / firm get bankruptcy the the the employees lose jobs and service delivery to the the the society is also affected if taxation payable to receiver of of revenue is is is manipulate or reduced The broad aim of of this study is is is to define accounting manipulation fin in in the South African context present negative effects of this practices to stakeholders and and and public and and and private institutions and and and suggest techniques that organisations government and other stakeholders may use to to identify accounting manipulations Due to to the the broad nature of financial manipulation this study study will will only investigate South African entity’s Financial Performance This study study will will use qualitative research approach to collect collect data data through online bank database (ie JSE) The collected data will will be
be
analysed using appropriate statistical tool and results will will be
be
presented in in a a a a a a a a a a a paper form for for publication to respective journals 38 7th International Conference on on on Governance and Accountability (ICGA) 2022