<abstract xmlns="http://www.w3.org/1999/xhtml"><p><bold>Background:</bold> Using a variety of alternative accounting policies brings about different effects on the stated business results and the value of the company. <bold>Objectives:</bold> The objective of this paper is to develop a fuzzy logic solution for determining bias in financial reports on low-activity financial markets, and to find a method applicable to unquoted entities. <bold>Methods/Approach:</bold> A fuzzy logic system was developed using data on Croatian companies, the MatLab software, and the Mamdani fuzzy inference method. <bold>Results:</bold> The paper provides the summary of results obtained using a fuzzy logic system, and they indicate that the model has relevant validity. <bold>Conclusions:</bold> The model can serve as a stimulus for more detailed studies of biased financial statements elements. The fuzzy logic model should be further tested on a larger sample of companies classified based on their activity and under different business conditions.</p></abstract>

Background: Using a variety of alternative accounting policies brings about different effects on the stated business results and the value of the company. Objectives: The objective of this paper is to develop a fuzzy logic solution for determining bias in financial reports on low-activity financial markets, and to find a method applicable to unquoted entities. Methods/Approach: A fuzzy logic system was developed using data on Croatian companies, the MatLab software, and the Mamdani fuzzy inference method. Results: The paper provides the summary of results obtained using a fuzzy logic system, and they indicate that the model has relevant validity. Conclusions: The model can serve as a stimulus for more detailed studies of biased financial statements elements. The fuzzy logic model should be further tested on a larger sample of companies classified based on their activity and under different business conditions.

Determining the Level of Accounting Conservatism through the Fuzzy Logic System

Business Systems Research Journal

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"Determining the Level of Accounting Conservatism through the Fuzzy Logic System"}

Background: Using a variety of alternative accounting policies brings about different effects on the stated business results and the value of the company....

Determining the Level of Accounting Conservatism through the Fuzzy Logic System

Online veröffentlicht: 09. Mai 2019

Seitenbereich: 88 - 101

Eingereicht: 05. Dez. 2018

Akzeptiert: 28. Feb. 2019

DOI: https://doi.org/10.2478/bsrj-2019-0007

Schlüsselwörter
accounting conservatism, aggressive accounting, fuzzy logic

© 2019 Josip Čičak et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Determining the Level of Accounting Conservatism through the Fuzzy Logic System

Online veröffentlicht: 09. Mai 2019

Seitenbereich: 88 - 101

Eingereicht: 05. Dez. 2018

Akzeptiert: 28. Feb. 2019

DOI: https://doi.org/10.2478/bsrj-2019-0007

Schlüsselwörteraccounting conservatism, aggressive accounting, fuzzy logic

© 2019 Josip Čičak et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Schlüsselwörter
accounting conservatism, aggressive accounting, fuzzy logic